Pertamina Encourages PGN – Patra Jasa Partnership for the 633 Thousand City Gas Networks (Jargas) Acceleration

Jakarta, January 5, 2024 - Pertamina Holding urges Gas Subholding PT Perusahaan Gas Negara Tbk and PT Patra Jasa to enhance their partnership to expedite the 633,930 City Gas Networks (Jargas) development target in 2024.

The PGN-Patra Jasa Partnership is strengthened through the signing of a Memorandum of Understanding (MoU) between PGN's Director of Sales and Operations, Ratih Esti Prihatini, and PT Patra Jasa's Director of Property, Whisnu Bahriansyah, at Grha Pertamina on Friday, January 5, 2024. The signing was witnessed by the Director of Logistics & Infrastructure of PT Pertamina (Persero), Alfian Nasution, and SVP Infrastructure Integration & Optimization, Agus Harsoyo.

Director of Logistics & Infrastructure of PT Pertamina (Persero), Alfian Nasution, stated that the Jargas Project is one of the National Strategic Projects (PSN) following Presidential Regulation No. 18 of 2020 regarding the RPJMN 2020-2024.

"The independent Jargas construction progress from 2021 until now is only about 290,400 SR. Economic and permitting issues still pose challenges in the Jargas project, and this MoU would be a milestone in the collaboration between PGN and Patra Jasa, benefiting both parties and Pertamina as a whole," Alfian said.

He added that the Jargas Jabodetabek Project is a Priority Project for Pertamina monitored by the Ministry of SOE, with collaboration schemes targeted for developers in Jabodetabek.

"The Directorate of Logistics & Infrastructure of the Holding plays a role as an integrator, recognizing significant synergy potential between Subholdings and Subsidiaries to support the achievement of Jargas, especially in the property assets of PT Patra Jasa. With the existence of Jargas, it would reduce the substantial subsidy for LPG imports," Alfian continued.

Moreover, this collaboration also targets office buildings, hotels, and commercial spaces owned by Patra Jasa, with a potential gas usage reaching 15,000 M3 per month. Patra Jasa is recorded as having a hospitality network in Jakarta, Bogor, Cirebon, Bandung, Semarang, Yogyakarta, Surabaya, Bali, Dumai, and Balikpapan.

According to Alfian, this Memorandum of Understanding would become a binding agreement no later than the first quarter of 2024, enabling the commencement of the Jargas development project on Patra Jasa's assets.

Vice President of Corporate Communication of Pertamina, Fadjar Djoko Santoso, mentioned that the Jargas development is Pertamina's effort to reduce emissions, supporting the government's target of achieving Net Zero Emission by 2060.

"Pertamina runs gas usage as a transitional energy, and Indonesia still has sufficient natural gas potential as a more economical and environmentally friendly energy source," Fadjar said.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**