PT Perusahaan Gas Negara Tbk (PGN) continues to encourage industrial competitiveness in order to grow the national economy and increase the utilization of national natural gas.

This is in accordance with the direction of the Ministry of BUMN, PGN as a supplier of natural gas provides and collaborates with BUMN Industrial Estates (KI) to provide environmentally friendly energy needs and support product competitiveness with natural gas efficiency.

President Director of PGN M. Haryo Yunianto revealed that PGN will support the development of New Industrial Zones according to the 2020-2024 RPJM outside Java Island. With a contracted supply portfolio with upstream suppliers of ± 1,000 BBTUD, PGN is projected to be able to meet the demand for natural gas in industrial estates.

"PGN's target in the short term is to immediately carry out a joint study with Industrial Estate managers to map the potential demand for natural gas and its transportation modes in Industrial Estates. Currently Indonesia has also entered the LNG era, so that supporting infrastructure such as a virtual pipeline can be built to reach Indonesian territory. East more broadly, "said Haryo in the Joint Coordination Meeting with BUMN Industrial Estates.

He explained that the collaboration with BUMN industrial estates is also in line with the Ministry of Industry's target for the creation of 156 industrial estates with a total land area of ​​65 thousand hectares (ha) of industry by the end of 2021.

As of June 2020, there are 118 industrial estates in Indonesia with a land area of ​​approximately 51,861 ha. Overall, PGN has distributed natural gas to 75 Industrial Estates in Indonesia.

As for the details, Sumatra with 14 industrial areas, West Java with 42 industrial areas, and Central Java and East Java with 19 industrial areas. The number of industrial customers being served is currently 636 industries with a volume of 236 BBTUD.

Furthermore, Haryo explained, several industrial sectors that absorbed large volumes were petrochemical, metal and steel industries, ceramics, glass / glassware, pulp & paper, and upstream textiles.

Recently, PGN has also signed a principal agreement (HOA) for gas supply and supporting infrastructure with KI Kendal with an estimated gas demand of 37 BBTUD and KIT Batang of 10 BBTUD.

"PGN continues to encourage cooperation with industrial estates to be realized soon, especially in industrial estates in the eastern part of Indonesia. Given that until now, industrial estates in Indonesia are still dominant in the western part of Indonesia," he said.

In addition, Haryo also explained, PGN also supports efforts towards an Eco-Industrial Park / Estate with environmental, social, and corporate governance aspects in industrial estates. It is hoped that this cooperation can increase regional competitiveness.

This can make the value of the company increase significantly in the long run, as well as increase the likelihood of low-cost incentives for Lenders.

"PGN will use the right commercial key parameters in the collaboration between PGN and Industrial Estate managers so that it benefits both parties. On the other hand, it must pay attention to appropriate technical factors in developing its gas infrastructure so that natural gas utilization can actually increase industrial competitiveness. in order to spur quality national economic growth, "he concluded.