Batam city, property owners to team up on city gas project
Wednesday, October 7 2020 - 04:04 PM WIB
The Batam municipality government is seeking to collaborate with property developers in the implementation of the city gas distribution network (Jargas) project in the city of Batam and the surrounding areas.
Acting Major of Batam Syamsul Bahru said the collaboration with the property developers is needed in order to speed up the realization of the city gas network program of the government, which has a target to install 4 million household connections (SRs) units by 2024.
He made the comment during a public consultation on the Jargas project through virtual means on Tuesday (06/08), which was participated by representatives of the Ministry of Energy and Mineral Resources, National Development Planning Ministry and Ministry of Finance and officials from the Batam Municipality government.
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Syamsul said city gas distribution network is suitable for Batam as there are many industries and real estates in Batam. He said that the Batam municipality government mulls a plan to obligate property developers and industries to take part in the development of Jargas program.
"If needed, we will issue a regulation that will make it mandatory for property developers to install gas facilities," Syamsul said.
The MEMR Ministry said in a statement that the government aims to install 307,749 SR units in Batam with an estimated expenditure of Rp2.47 trillion or equals to Rp7.72 million per household.
The government develops the city gas network program as a part of moves to reduce LPG subsidy, which continued to increase in the past four years or so. In 2016, the LPG subsidy reached Rp24.94 trillion and then increased to Rp38.76 trillion in 2017 and Rp58.14 trillion in 2017 and was set lower at Rp54.15 trillion in 2019.
Editing by Roffie Kurniawan