PT Perusahaan Gas Negara Tbk (PGN) as the Sub holding Gas of PT Pertamina (Persero) will support the provision of infrastructure and natural gas distribution services in the Kendal Industrial Estate (KIK), Central Java.

PGN's Director of Infrastructure and Technology, Redy Ferryanto, said that since 2016, the listed company with the code PGAS on the Indonesia Stock Exchange had conducted studies on KIK, especially regarding gas demand. The latest research shows that the gas demand in the region is relatively high.

"PGN continues to coordinate intensively with KIK calculating the total potential gas demand that will be used. KIK will send an official letter to PGN regarding the complete total demand, "said Redy in Jakarta, Wednesday (24/2).

As is well known, the availability of natural gas and its infrastructure is a vital component in developing an industrial area. KIK is a new industrial area that is ready in Indonesia with all the readiness of the facilities.

The certainty of natural gas availability could be an obstacle that makes investors delay investing in the area.

According to Redy, PGN will strive to serve the natural gas trade through PGN's pipeline distribution network infrastructure in the Sales & Operation Region III (SOR III), including Central Java, East Java, and East Indonesia.

"Meanwhile, natural gas trading besides pipelines (CNG and LNG) will be managed by PGN's subsidiaries, namely PT Pertamina Gas Niaga (Pertagas Niaga) and PT Gagas Energi Indonesia (Gagas)," he explained.

In line with the completion of the Gresik-Semarang gas transmission pipeline by PT Pertamina Gas (Pertagas), PGN expects it helps realize the certainty of distribution of natural gas supply in Central Java.

This 267 km long transmission pipeline network has a maximum gas flow capacity of around 400 million standard cubic feet per day (MMSCFD).

The potential source of supply that the Gresik-Semarang Pipe will supply will come from Jambaran-Tiung Biru (JTB) owned by PT Pertamina EP Cepu.

Optimizing natural gas distribution infrastructure to meet energy needs for the industry is expected to positively impact KIK and the surrounding community's growth for the progress of the economy of Central Java.

KIK has been designated as a Special Economic Zone (KEK) resulting from a collaboration between the Joint Venture scheme (joint venture) between PT Jababeka Tbk and Sembawang Corporation. Indonesian President Joko Widodo and Singaporean Prime Minister Lee Hsien Loong inaugurated the KIK.

"KIK is one of the potential areas that can grow faster with the availability of natural gas energy to accelerate regional economic development. The success of this area will also be mutually beneficial cooperation between the government and business entities," said Redy.

Until now, 64 companies from 8 countries have joined KIK, namely Taiwan, China, South Korea, Hong Kong, Singapore, Japan, Malaysia, and of course, Indonesia, in this ABTB product.

KIK is expected to generate Micro, Small, and Medium Enterprises (UMKM) and open new jobs for the surrounding community.

"PGN seeks to strengthen natural gas connectivity in order to provide added value in the centers of new industrial growth in Central Java. If industrial development is increasingly stretched, it can strengthen investment and have a positive impact on regional economic stability," said Redy.

For PGN, the development of natural gas distribution infrastructure in Central Java is quite challenging. Therefore, continued Redy, cooperation, and support from the Regional Government, the Central Java DPRD, and various stakeholders are also very important for PGN to develop a more massive natural gas infrastructure in Central Java.

"PGN as sub holding gas is committed to developing reliable infrastructure and innovation in natural gas services to help increase industrial productivity in Central Java so that it will have a real impact on national economic growth," said Redy.