Paper Producer Fajar Surya Tridasa, Looking to Cut Costs, Switches to PGN Piped Gas

Indonesia is unlikely to need to import natural gas until at least 2020 due to robust production at home, a senior government official said on Wednesday (12/07). (Photo courtesy of PGN)

By : JG | on 2:59 PM July 18, 2017
Category : Business, Special Reports

Jakarta. State-controlled gas distributor Perusahaan Gas Negara, or PGN, announced last week that it has added a new corporate customer to its long list of clients that enjoy piped natural gas services at reduced costs.

Danny Praditya, PGN's commercial director, said in a statement that Bekasi-based paper company Fajar Surya Tridasa began receiving piped natural gas to fuel its production factory earlier this month, doing away with its previous fuel source, liquefied petroleum gas.

The commercial director added that domestic industries are under intense pressure to trim fuel costs and make operations more efficient due to rising competition. Piped natural gas is considered by many manufacturers in the country a clean and safe fuel source compared to other fossil fuels.

"By switching to PGN's natural gas, [Fajar Surya Tridasa] has the potential to save up to 40 percent on fuel costs," Danny said, adding that the gas company is committed to supporting domestic manufacturing industries grow.

PGN said it expects additional companies to begin using its piped gas, including engineering specialist Armstrong Industri Indonesia, food producer Ariake Europe, steel producer Kencana Cakra and bread producer Yamazaki Indonesia, as well as soap manufacturer Indo Sultan Jaya.

Mitsubishi Logistics and Yamada Indonesia, which manufacturers office furniture, are also expected to register for PGN services in coming months.

"We hope the country's manufacturing industry becomes more efficient so [companies] can improve their competitiveness and ultimately boost Indonesia's economic growth," Danny said.

Perusahaan Gas Negara operates more than 7,270 kilometers of gas pipelines, or 80 percent of total downstream gas pipes in the country. (Photo courtesy of PGN) Perusahaan Gas Negara operates more than 7,270 kilometers of gas pipelines, or 80 percent of total downstream gas pipes in the country. (Photo courtesy of PGN)

Darmawan, Fajar Surya Tridasa's general manager, said PGN's piped gas will help the company become more cost-efficient to expand future business.

"We would like to deliver our greatest gratitude to PGN for distributing natural gas to our factory on schedule. Utilizing the piped natural gas from PGN has allowed us to save up to 40 percent [of total spending], which will be put to future expansions," Darmawan said. "We plan to build a new plant."

PGN, the biggest natural gas distributor in the country, services nearly 1,660 large manufacturers and power producers across the archipelago, in addition to 1,930 smaller businesses and up to 204,000 households in 12 provinces.

The distributor operates more than 7,270 kilometers of gas pipelines, or 80 percent of total downstream gas pipes in the country.

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