THE ROLE OF SERVICE MANAGEMENT AND INSTITUTIONAL TRUST IN ENHANCING RESIDENTS’ COMFORTABLE TO STAY: LESSONS FROM THE HOUSEHOLD GAS NETWORK PROGRAM IN BONTANG CITY

Abstract

This study examines the role of service management and institutional trust in enhancing residents’ comfortable to stay, drawing lessons from the household gas network (jargas) program in Bontang City, Indonesia. Bontang is a strategic industrial municipality in East Kalimantan with a population of approximately 190,000 and one of the highest regional GDP per capita levels in the province, driven by petrochemical and gas-based industries. The city has implemented 18,436 household gas connections and is scheduled to receive 10,553 additional connections in 2025–2026 through the national budget, extending coverage across 15 urban districts. The development of jargas is under the authority of the central government, as stipulated in Law No. 23 of 2014 on Regional Government, while local administrations support implementation and community engagement.

Using a quantitative survey and Partial Least Squares Structural Equation Modeling (PLS-SEM), this research explores how perceptions of economic benefits, social impacts, and risks affect residents’ comfort, with service satisfaction as a mediator and institutional trust as a moderator. Results reveal that well-managed service quality—characterized by reliability, responsiveness, and equitable access—significantly enhances comfort, whereas perceived social tensions and safety risks undermine it. Service satisfaction partially mediates the effects of perceived benefits, social issues, and risks, while institutional trust reduces the negative influence of risks. The findings highlight that beyond technical expansion, credible governance and sound service management are essential for sustaining public support and improving community well-being in large-scale energy infrastructure initiatives.