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The Jambi City Government is ready to independently install a 100,000 connections natural gas (natgas) network through PT Siginjai Sakti (Perseroda), a company owned by the city government, after the signing of the memorandum of understanding (MoU) between PT Pertamina (Persero) subsidiary PT Pertagas Niaga and PT Siginjai Sakti on Mar. 20, 2025.
Jambi Mayor Maulana said in a written statement on Mar. 20, 2025, that the signing of the MoU is an important step in optimizing the use of nargas as a clean and efficient energy source. The management of the natgas network is expected to reduce dependence on subsidized liquefied petroleum gas (LPG).
"We want to ensure that the people of Jambi City achieve a more efficient and affordable energy access. With the development of a wider gas network, people no longer need to rely on subsidized LPG - which is often limited in availability and fluctuate in price," said the mayor.
Maulana stated that the presence of the gas network would provide many other benefits, including more guaranteed security, more economical costs, and more environmentally friendly than subsidized LPG in the long term. He hopes that more households and business actors in Jambi City could enjoy the benefits of the natgas network
PT Pertagas Niaga President Director Toto Yulianto expressed his appreciation to the Jambi City Government as the first region in Indonesia to manage its gas network independently.
"Jambi City can be used as an example in Indonesia," he said.
Toto added that the approval for the allocation of the natgas network will be given by the Energy and Mineral Resources Ministry, and he is optimistic that the approval could be realized promptly because the plan would reduce government subsidy spending for LPG gas.
Separately, PT Siginjai Sakti Acting President Director Sasli Rais explained that the first step after the signing of the MoU is to plan, record, and integrate the gas network system. The natgas network Jambi City currently has connections to 13,268 houses which were funded with the assistance of the Indonesian state budget, with 83 percent being active while the rest are still in the activation stage.
The independent management of the gas network by PT Siginjai Sakti is also expected to have the potential to increase the Jambi City locally-generated revenue (PAD), especially the gas network segments targeting commercial, housing, and industrial needs as well as the need of other business sectors and the general public.
