PT KAWASAN INDUSTRI JABABEKA TBK PASURUAN, November 9, 2023 - PT Jababeka Tbk inaugurated a mini LNG (Liquefied Natural Gas) Plant project, located at Pasuruan Industrial Estate Rembang (PIER), Pasuruan, East Java, Thursday (9/11/2023).
The inauguration was carried out by Nurkholis, Head of the Energy and Mineral Resources Office (ESDM) of East Java Province, representing Khofifah Indar Parawansa, Governor of East Java, Budianto Liman, President Director of PT Jababeka Tbk (the Company), Tjahjadi Rahardja, President Director of PT Jababeka Infrastruktur (a subsidiary of the Company), Wira Rahardja, President Director of PT Likuid Nusantara Gas, Kelvin Susilo, Chief Financial Officer of PT Likuid Nusantara Gas, Yafet Rutherford M
arzuki, COO and Adimulia Widjojo, CMO of PT Likuid Nusantara Gas and Didik Prasetiyono, President Director of PT SIER.
The first Mini LNG Plant in Indonesia
The mini LNG plant will be located on an area of 10,162 m2 with the concept of an open space plant. This plant will be a liquefied natural gas (LNG) processing and distribution site with a maximum volume production of 2.5 mmscfd per day. The LNG production will be stored and distributed in iso tank tubes of 20 and 40 feet.
Budianto Liman, President Director of PT Jababeka Tbk, explained, the main purpose of the factory construction is to support the Indonesian government's program in increasing the mix of environmentally friendly low-emission energy, through the provision of liquefied natural gas to meet the needs of domestic industrial and commercial players.
"This plant itself is the first privately managed mini LNG plant company in Indonesia. We are optimistic that the operation of this plant will be able to support the government's joint efforts to provide clean and sustainable energy sources. With the hope, it can be a quality energy fulfillment solution and at increasingly competitive prices for consumers in Java Island and its surroundings. The construction of this mini LNG plant is also a corporate step from the Company to increase value for shareholders," said Budianto Liman.
Budianto Liman also said that the mini LNG plant project was the result of the acquisition of PT Jababeka Tbk through its subsidiary, PT Jababeka Infrastruktur in PT Likuid Nusantara Gas. PT Jababeka Infrastruktur controls 60 percent of shares while the remaining 20% is each owned by Fortius Corporation and individuals. Meanwhile, the total investment value of this project amounted to US $ 16,898 million and absorbed a workforce of more than 120 people.
Furthermore, Budianto Liman explained that Jababeka is optimistic that the mini LNG plant can have a positive impact on Jababeka's business income in the future, which comes from meeting the needs of companies or users who want more economical prices and more environmentally friendly energy sources.
For your information, this issuer coded KIJA shares recorded a growth of 9.23 percent year on year (yoy) to IDR 2.72 trillion in 2022, from the previous IDR 2.49 trillion in 2021. And in the third quarter of 2023, KIJA again achieved higher growth of 30% to IDR 2.252 trillion compared to the same period the previous year. Meanwhile, net profit for the three quarters of 2023 was IDR 231.9 billion compared to a net loss of IDR 101.6 billion for the same period in 2022.
Operational in the second half of 2024
Meanwhile, Wira Rahardja, President Director of PT Likuid Nusantara Gas, admitted that he was happy to be able to work with Jababeka. Because Jababeka is an integrated industrial estate-based independent city development company with more than 33 years of experience and high credibility. This can be seen from its four independent city projects to become highly prospective independent cities.
"In this cooperation with Jababeka, we did not take long (to consider). Seeing the success of its independent city projects, such as Kota Jababeka and Kendal Industrial Estate, for us, Jababeka is a very strategic partner in the construction and development of PT Likuid Nusantara Gas," said Wira Rahardja.
Wira Rahardja added that the mini LNG plant is targeted to be completed as early as eight (8) months and will be operational in the second half of 2024. Meanwhile, the target market of PT Likuid Nusantara Gas will be focused mainly on the East Java region, then to Central Java and Bali with retail segments, such as hotels, cafes, mall restaurants and industries.
"Nearby, we can help meet the needs of tenants in Pasuruan Industrial Estate Rembang, and cafes, hotels, malls in East Java and its surroundings," said Wira Rahardja.
Furthermore, explained Wira Rahardja, the delivery of liquefied natural gas to industries and commercials outside East Java by PT Likuid Nusantara Gas is very possible. Because it distributes liquefied natural gas using large cylinders (iso tanks) and small vessels (VGL 175 liters) which are sent using vehicle transportation (cars/trucks) and do not need to use gas pipelines for distribution. By carrying out the concept of "Mobility Gas Solution", PT Likuid Nusantara Gas is optimistic to become an energy transition solution and participate in realizing Indonesia net zero in the future.
According to Wira Rahardja, liquefied natural gas from PT Likuid Nusantara Gas can be an alternative while providing added value for industry players for their business operations. Because in addition to being environmentally friendly, the price of liquefied natural gas can save their operational costs by 20-30% compared to the use of LPG or fuel.
Meanwhile, East Java Governor Khofifah Indar Parawansa, represented by Nurkholis, head of the Energy and Mineral Resources Agency (ESDM) of East Java Province, welcomed the construction of the mini LNG plant. He hopes that the construction of the mini LNG plant will run smoothly and can meet the needs of existing industries in East Java, and more industry players in East Java will switch to using environmentally friendly energy.
"I represent (Mrs. Governor), there is a message that she really supports and appreciates this activity, considering that it supports efforts to reduce carbon emissions. We hope that after this more companies will change to use environmentally friendly energy, "concluded Nurkholis.
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PT Kawasan Industri Jababeka Tbk published this content on 09 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 November 2023 15:20:14 UTC.
