The Secretary General of the Ministry of Energy and Mineral Resources (ESDM) Republic of Indonesia, Dadan Kusdiana, announced that the Cirebon–Semarang (Cisem) pipeline project will be extended to cover the Cirebon–Bandung and Semarang–Solo–Yogyakarta routes.
According to Dadan, the expansion is part of the government’s broader effort to develop household gas networks (jargas) across Indonesia.
“To support the development of jargas through transmission pipelines, we will expand the network from Cirebon to Bandung, and from Semarang to Solo and Yogyakarta,” he said during a hearing with Commission XII of the House of Representatives (DPR) on Wednesday, 3 September.
Based on presentation materials, the budget for these two transmission pipeline projects is included in the Ministry of Energy and Mineral Resources’ Budget Implementation List (DIPA) for 2025 and 2026.
The total budget for the 132-kilometer Cirebon–Bandung transmission pipeline is Rp865.07 billion, with Rp10.94 billion allocated for 2025 and Rp854.13 billion for 2026.
Meanwhile, the total budget for the 148-kilometer Semarang–Solo–Yogyakarta pipeline is Rp895.63 billion—Rp13.13 billion in 2025 and Rp882.50 billion in 2026.
In a separate statement, Deputy Minister of Energy and Mineral Resources Yuliot Tanjung said both projects will be opened to public tender this year, allowing the private sector to participate.
“The private sector can join. This will be an open tender,” said Yuliot.
He added that the auction for the pipeline projects is expected to take place in November or December 2025, enabling construction to begin in early 2026.
“The auction can be held in November or December. Field work can begin in January 2026,” he said.
As of the end of April 2025, Phase II of the Cisem pipeline project—specifically the Batang–Kandang Haur Timur section—had reached 64.3% completion, surpassing the 62.8% target.
The Cisem gas pipeline is a National Strategic Project (Proyek Strategis Nasional/PSN) valued at Rp2.8 trillion, funded through the state budget (APBN) and implemented under a design-and-build procurement scheme. The project has entered its peak construction phase and currently employs 1,614 workers.
The 245-kilometer Cisem II project is a continuation of Cisem I, which has been supplying gas to the Kendal Industrial Area in Central Java since November 2023. The government continues to accelerate construction to ensure timely completion.
Cisem II is targeted for completion in April 2026 and aims to establish a natural gas transmission network across Java, linking East Java to West Java. Beneficiaries include the Balongan Refinery, industrial areas in West Java, the household gas network (jargas), and fertilizer producer PT Pupuk Kujang.
Phase II began in September 2024 with a symbolic first weld carried out by Minister of Energy and Mineral Resources Bahlil Lahadalia at the Batang Integrated Industrial Estate in Central Java. The contract, valued at Rp2.8 trillion, was signed in August 2024 by the winning joint operation (KSO) of PT Timas Suplindo and PT Pratiwi Putri Sulung.
This second phase, now inaugurated, will span 245 kilometers from Batang to East Kandang Haur.
Read also : Cisem II gas pipeline project surpasses target with 64.3% progress
Gas supply update
In a related development, state-owned gas distributor PT Perusahaan Gas Negara Tbk. (PGAS) confirmed it had received a new gas supply of 27 billion British thermal units per day (BBtud) from the West Natuna Gas Supply Group, starting on 22 August.
PGN Corporate Secretary Fajriyah Usman stated that the additional gas supply will be distributed to existing PGN customers, primarily in Batam, Dumai, and West Java.
“The additional supply received by PGN will serve our existing customers, mainly in Batam, Dumai, and West Java,” Fajriyah told Bisnis.com.
The distribution is being carried out under a multi-party gas swap mechanism—an agreement involving upstream regulator SKK Migas, upstream contractors, gas buyers like PGN, and international gas companies. The mechanism ensures stability of domestic supply while honoring existing contracts.
Under this system, gas from one source can be distributed via another party to PGN, ensuring supply availability for industrial needs without breaching contractual obligations.
Fajriyah added that customer gas volumes have increased due to the new supply.
“We are grateful for the support from the Ministry of Energy and Mineral Resources, SKK Migas, and other stakeholders in securing this additional gas allocation for PGN’s distribution,” she said.
The gas is being supplied by Medco E&P Grissik Ltd. and PetroChina International Jabung Ltd., following a recent shortage that had limited PGN’s supply for industrial use.
The supply constraints had been widely criticized by industrial players, who reported disruptions in production due to the reduced availability of gas.
Editing by Reiner Simanjuntak
