Yogyakarta – In order to provide sustainable and competitive energy, PT Pertagas Niaga as part of the Pertamina Gas Subholding and Pupuk Iskandar Muda (PIM) signed a Letter of Agreement (LOA) implementing MEMR Decree 134/2021.

Based on the Minister of Energy and Mineral Resources Decree 134/2021, PIM received a natural gas allocation of 45 BBTUD.

Gas for PIM is then supplied by Pertagas Niaga which gets an upstream allocation from the Block A Working Area. With the implementation of the Minister of Energy and Mineral Resources Decree 134/2021, it is hoped that the domestic fertilizer industry can continue to develop so that it makes a positive contribution to domestic agriculture.

The signing was carried out by the President Director of PT Pertagas Niaga Aminuddin and the Director of Operations and Production of PT Pupuk Iskandar Muda Jaka Kirwanto in Yogyakarta, Monday (23/05/2022).

“In principle, Subholding Gas always supports the Government's steps to support the progress of the national industry. This collaboration with PIM has an important meaning for us because apart from being a consumer with a large gas absorption in Sumbagut, what we are doing is also part of a BUMN synergy," explained Aminuddin, (24/05/2022).

Aminuddin continued, the implementation of the Decree of the Minister of Energy and Mineral Resources is also expected to bring efficiency in PIM production costs so as to encourage productivity to produce high-quality and competitive products.

"We strive for a guaranteed gas supply for PIM, so that its benefits can make a positive contribution in supporting agricultural productivity and national food security," Aminuddin added.

PIM also gave a similar welcome, who believed that this collaboration would bring a positive contribution to the fertilizer industry in Indonesia.

Until now, Pertagas Niaga as part of Pertamina's Gas Subholding has supplied 70 BBTUD of gas for the northern part of Sumatra. In addition to PIM, gas supplies via pipelines and LNG are provided to industries in the SEZs of Sei Mangkei, Kuala Tanjung and Medan.

Subholding Gas believes that the use of natural gas by industry will continue to increase along with the awareness to switch to gas as a transitional energy that is more environmentally friendly. This is also to support the Government's commitment to declare Net Zero Emission in 2060.