PEMA, PGN to fast-track Aceh gas study, eyeing Mubadala Block supply

PT Pembangunan Aceh (PEMA) and PT Perusahaan Gas Negara Tbk (PGN) have entered into a strategic partnership to unlock Aceh’s significant natural gas potential, a move aimed at accelerating industrial downstreaming and revitalising the regional economy.

Representatives from PT Pembangunan Aceh (PEMA) and PT Perusahaan Gas Negara Tbk (PGN) commemorate the signing of a strategic MoU in Banda Aceh, Monday (1/19). This collaboration focuses on mapping gas infrastructure and identifying high-value industrial opportunities to strengthen national energy security. Source: PEMA

BANDA ACEH — The collaboration was formalised through the signing of a Memorandum of Understanding (MoU) on Monday at the Muraya Hotel in Banda Aceh, Monday (1/19). The agreement establishes a framework for a joint study on gas supply utilisation, focusing on infrastructure mapping and identifying high-value industrial opportunities across the province.

Naufal Natsir Mahmud, PEMA’s Director of Business Development, emphasised that the study would evaluate current and future supply projections, including the strategic involvement of the Mubadala Block. He noted that energy security is the linchpin for the region's broader economic recovery following past disasters.

“In an effort to jumpstart Aceh's economic engine, stable energy is required. PEMA recognises the importance of strategic partners like PGN to jointly build a comprehensive natural gas ecosystem in Aceh," Naufal said following the signing ceremony.

The partnership is expected to create a "multiplier effect" for the local community, particularly through sustainable job creation. Naufal also gave assurances that local human resources would be given significant roles in future business operations.

Mirza Mahendra, Director of Strategy and Business Development at PGN, described Aceh as a "key point" for Indonesia’s national energy security. He stated that PGN would focus on connecting supply sources with demand centres, specifically supporting Special Economic Zones (KEK) in Lhokseumawe and Aceh Besar.

"PGN is conducting a thorough mapping of potential gas supply, infrastructure development needs, and the demand potential to be served," Mirza explained.

The technical study will determine whether the gas will be distributed via pipelines or through converted forms such as Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG). While the study is slated for a two-year period, Mirza expressed a desire to fast-track the project to confirm economic feasibility and begin construction sooner.

Beyond the gas sector, PEMA is diversifying its portfolio under the leadership of President Director Mawardi Nur, with interests in coffee, patchouli oil, and palm shell management maturing since 2025.