"In 2017, the target is 271.5 thousand household connections, which includes 247.5 thousand connections from state-owned gas distributor firm PT PGN Tbk and 16 thousand from PT Pertagas firm. The development is financed mainly through funds from the state budget," Director of Oil and Gas Infrastructure Planning and Development Alimuddin Baso remarked in Jakarta on Wednesday.
The government is targeting to set up gas distribution networks in a total of 46 regions in 2017.
Since 2015, a total of 210 city gas network areas were planned to be developed until 2019. The funds for 10 areas will be sourced from the state budget, while the rest will be funded by state-owned enterprises.
The use of a gas distribution network connection is more efficient than liquefied petroleum gas (LPG) in cylinders. A three-kilogram (kg) LPG worth Rp20 thousand-Rp23 thousand is equivalent to Rp18 thousand of liquefied natural gas (LNG).
As compared to the 12-kg LPG cylinder worth Rp130 thousand, LNG distributed through the network connection is only Rp72 thousand.
Earlier, ESDM Minister Ignatius Jonan had promised additional gas network connections for households through the state budget funds in 2017.
"Funds for the gas network will be sourced from the allocation of around Rp190 billion for financing tank construction," Jonan noted.
According to Jonan, assuming that a connection costs about Rp10 million per household, with additional funds worth Rp190 billion, a total of 19 thousand more connections can be provided in some regions in Indonesia.
"The use of additional funds will be accorded to the development of the network," he added.