JAKARTA – PT Perusahaan Gas Negara Tbk (PGAS) is preparing capital expenditure (capex) of USD 338 million, or more than IDR 5 trillion, in 2025 for the development and reinforcement of natural gas infrastructure in Indonesia.

PGAS President Director, Arief Setiawan Handoko, stated that this capex allocation is part of the company's strategy to support the national energy transition.

“With this investment, we are optimistic that we can expand service coverage and ensure the reliability of gas supply across Indonesia,” he said in a public disclosure on Monday (10/3).

Currently, PGAS's gas pipeline network stretches from Aceh to East Java, but eastern Indonesia still faces infrastructure limitations. Therefore, the company will also develop beyond-pipeline solutions, such as Liquefied Natural Gas (LNG) and Compressed Natural Gas (CNG), to meet energy needs in regions without gas pipeline networks.

In addition to expanding in the domestic market, PGAS has also begun to penetrate international markets. In 2024, the company successfully sold LNG to international buyers for the first time, marking the business's expansion to a global level.

Looking ahead, PGAS anticipates an increase in domestic gas supply, including from the Masela Block, which is projected to begin operations by 2030.

“We expect domestic gas supply to strengthen over the next few years. This will create opportunities for PGN to continue growing and play a strategic role in the national energy ecosystem,” said Arief. (DK/KR/ZH)