Indonesia targets 160,000 household gas connections by 2026 using CNG

Indonesia's Ministry of Energy and Mineral Resources (ESDM) has set an ambitious target to construct 160,000 household gas network (jargas) connections by 2026. This expansion will leverage Compressed Natural Gas (CNG) clustering, a 'beyond pipeline' distribution method enabling gas supply to regions not yet served by traditional pipelines.

Deputy Minister of Energy and Mineral Resources, Yuliot Tanjung, announced the plan while inspecting a CNG-based jargas implementation in Sleman, Yogyakarta. He stated that this distribution model offers a solution for accelerating equitable access to clean energy without the lengthy wait for new gas transmission pipeline construction. The ministry plans to conduct auctions for these projects in late July, with regional readiness assessments ongoing.

The new connections will be spread across Java, Sumatra, and Kalimantan, prioritizing proximity to gas sources. The Sleman project, already serving 4,545 households, demonstrates the viability of CNG clustering, offering significant cost savings compared to LPG. Looking ahead, the government aims for one million household connections by 2027, supported by state budget funding, and plans for approximately 350,000 new connections annually through various funding schemes as outlined in the National Medium-Term Development Plan (RPJMN) 2026–2029.