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PGN Expands Natural Gas Access in Yogyakarta with CNG Clustering

The Jakarta Globe
June 19, 2026 | 1:19 pm
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Deputy Energy Minister Yuliot Tanjung and PGN President Director Arief K Risdianto visit the CNG natural gas distribution in Sleman on June 19, 2026. (Photo Courtesy of PGN)




(Photo Courtesy of PGN)
Deputy Energy Minister Yuliot Tanjung and PGN President Director Arief K Risdianto visit the CNG natural gas distribution in Sleman on June 19, 2026. (Photo Courtesy of PGN) (Photo Courtesy of PGN)

Jakarta. Perusahaan Gas Negara (PGN) is expanding natural gas access for Yogyakarta households with its compressed natural gas (CNG) clustering.

PGN has launched the pilot project of CNG clustering in the Yogyakartan regency of Sleman. This system enables safe and reliable distribution of natural gas to household distribution networks, without requiring the presence of a main transmission pipeline network. Deputy Energy Minister Yuliot Tanjung had checked on the project during a Sleman trip.

According to Yuliot, the innovation aligns with the government's continued push for the use of natural gas as a cleaner, more efficient, and domestically sourced transitional energy source to strengthen national energy security. The government has aimed to develop approximately 350,000 household connections to natural gas a year between 2026 and 2029 through various funding schemes.

"The use of CNG and city gas networks boost household efficiency. They are also practical and safe," Yuliot was quoted as saying in a press statement.

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Its use can also reduce subsidized liquefied petroleum gas (LPG) consumption, thereby slashing subsidies and imports

PGN President Director Arief K Risdianto said that the Sleman pilot project demonstrated how the CNG clustering is applicable to other parts of the country. He went on to say that PNG had adjusted the high-pressure CNG to flow safely to household kitchens.

"We can assure you that the flow of natural gas to your kitchens are safe for daily use as we embrace strict supervision and pressure regulation technology," Arief said.

To date, PGN has built more than 4,500 household connections in Sleman, with a distribution pipeline network spanning over 141 kilometers. The average natural gas distribution to Sleman gas network customers has reached approximately 84,000 cubic meters (m³) per month. This figure is equivalent to the use of approximately 64 metric tons of LPG per month.

The use of the gas network in the Sleman region is not limited to households but will continue to be expanded massively to strengthen the local economy, including small businesses, restaurants, hotels, and healthcare facilities such as hospitals.

Beyond pipeline service, PGN is optimizing synergies with its subsidiary, PT Gagas Energi Indonesia (Gagas), which already has a portfolio in managing non-pipeline gas distribution. PGN, through Gagas, manages and operates 14 gas stations (SPBGs) and 4 mobile refueling units (MRUs), which serve various CNG consumers in the transportation, commercial, and industrial sectors across Indonesia.

One commercial customer that has adopted CNG is Rumah Makan Payakumbuah Yogyakarta, with CNG consumption reaching 2,000-2,300 m³. The operational benefits of this restaurant include energy cost efficiency. Compared to its previous energy consumption, using CNG can save approximately 30-33%.

"PGN has extensive experience in managing natural gas, both through pipelines and non-pipeline modes such as CNG and LNG. As Pertamina's Gas Subholding, we are ready to support the government's efforts to formulate targeted CNG utilization and play an active role in the national energy diversification target," Arief said.

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