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16 Okt 2026
PGN Strengthens Business Efficiency and Competitiveness Through Sustainable Decarbonisation Initiatives
Jakarta – PT Perusahaan Gas Negara (Persero) Tbk (PGN), as Pertamina’s Gas Subholding, continues to strengthen the implementation of decarbonisation as part of the company’s sustainable business strategy. As of August 2026, the Gas Subholding had successfully achieved an emissions reduction of 29,574.87 tonnes of CO₂ equivalent (tCO₂eq), or 35.3 per cent above the target set for that period.
This achievement demonstrates a positive trend in the implementation of decarbonisation programmes within the Gas Subholding Group, whilst also serving as a foundation for the company to strengthen various emission reduction initiatives for the period 2027–2030.
PGN’s Director of Strategy and Business Development, Mirza Mahendra, stated that decarbonisation has become an integral part of the company’s business strategy, not only to support emissions reduction but also to enhance operational efficiency, maintain competitiveness, and anticipate developments in climate risks and regulations.
“The emission reduction achievements up to August 2026 demonstrate that the various decarbonisation initiatives implemented by the Gas Subholding are yielding positive results. For PGN, decarbonisation is not merely about fulfilling environmental commitments, but rather part of a business strategy to improve efficiency, strengthen competitiveness, and create long-term value for the company,” said Mirza.
In line with these achievements, PGN continues to strengthen the implementation of its decarbonisation programme through various initiatives within the Gas Subholding Group, including improving energy efficiency at operational facilities, reducing gas losses, and optimising the use of lower-emission energy sources.
These initiatives are aimed at improving the efficiency of natural gas infrastructure management and operational activities, whilst supporting the government’s commitment to achieving the Net Zero Emissions (NZE) target by 2060 or sooner.
Cumulatively, from 2025 to August 2026, the Gas Subholding’s emissions reduction stood at over 68,500 tCO₂eq, representing approximately 15.7 per cent of the company’s cumulative decarbonisation target up to 2034.
In addition to delivering environmental benefits, the implementation of decarbonisation also has the potential to create economic value for the company. Based on calculations from the decarbonisation programme, the Marginal Abatement Cost (MAC) stands at -0.19 thousand USD/tCO₂eq. This negative figure indicates that the portfolio of emission reduction initiatives being implemented has the potential to generate cost efficiencies whilst delivering environmental benefits.
“Through various energy efficiency and operational optimisation programmes, we are striving to ensure that the emissions reduction agenda proceeds in tandem with increased productivity and cost efficiency. Thus, decarbonisation not only delivers environmental benefits but also supports the strengthening of the company’s business fundamentals,” explained Mirza.
To ensure the sustainability of these achievements, PGN organised the Gas Subholding Decarbonisation Workshop 2027–2030 on 7 October 2026 in Jakarta. The event involved representatives from PGN and the entities within the Gas Subholding Group, including PT Pertamina Gas, PT Perta Arun Gas, PT Saka Energi Indonesia, PT Permata Graha Nusantara, PT PGN LNG Indonesia, PT PGAS Solution, PT PGAS Telekomunikasi Nusantara, and PT Gagas Energi Indonesia, to draw up an integrated emissions reduction plan aligned with the Company’s Long-Term Plan (RJPP) 2027–2030.
The development of these initiatives also draws upon the Gas Subholding’s ESG Roadmap 2025–2034 as the framework for implementing the company’s sustainability programmes. Various programme proposals will subsequently be finalised and submitted to management to ensure their implementation is measurable, integrated and sustainable.
Mirza emphasised that the involvement of all entities within the Gas Subholding Group is a key factor in ensuring that the decarbonisation programme can be implemented consistently and deliver a tangible impact on the company’s performance.
“Decarbonisation is no longer merely about reducing emissions, but has become part of our business strategy to maintain efficiency and competitiveness, mitigate climate and regulatory risks, and meet the expectations of investors, customers and the public. Through collaboration across all entities within the Gas Subholding Group, we are committed to strengthening the implementation of measurable and sustainable decarbonisation initiatives,” concluded Mirza.
About PGN
PT Perusahaan Gas Negara (Persero) Tbk (PGN) is Pertamina's Gas Subholding, operating in the transmission and distribution of natural gas, as well as the development of integrated natural gas infrastructure and services in Indonesia. PGN manages over 95% of the country's downstream natural gas infrastructure to support Indonesia's energy security and energy transition. PGN also controls over 90% of the commercial natural gas market in Indonesia.
Disclaimer:
This press release contains forward looking statements based on the Company's current data and expectations, which involve a number of risks, uncertainties, and assumptions. Factors that may cause actual results to differ materially include industry conditions, fluctuations in crude oil and gas prices, the Company's ability to obtain and execute new projects, and competitive dynamics. Should one or more of these risks or uncertainties occur, or should the underlying assumptions prove inaccurate, the actual results may differ materially from those stated or anticipated.
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