{
    "success": true,
    "data": {
        "id": 1719461,
        "msgid": "indonesias-abundant-gas-reserves-why-still-importing-lpg-bahlil-explains-1777982001",
        "date": "2026-05-05 18:05:05",
        "title": "Indonesia's Abundant Gas Reserves: Why Still Importing LPG? Bahlil Explains",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Energy",
        "summary": "Indonesia's Minister of Energy and Mineral Resources, Bahlil Lahadalia, has explained that despite the country's plentiful natural gas reserves, it continues to import LPG due to a lack of key components propane (C3) and butane (C4) in domestic gas, which is mostly methane (C1) and ethane (C2). Domestic LPG production meets only about 1.6-1.7 million tonnes of the annual 8.6 million tonne demand, necessitating imports of around 7 million tonnes that cost the nation Rp137 trillion in foreign exchange annually, with subsidies adding Rp80-87 trillion. This situation highlights a critical challenge in leveraging Indonesia's energy resources effectively to reduce import dependency and fiscal burdens.",
        "content": "<p>Jakarta, CNBC Indonesia - The Minister of Energy and Mineral\nResources (ESDM), Bahlil Lahadalia, has explained the reasons behind the\nhigh levels of Liquefied Petroleum Gas (LPG) imports, despite Indonesia\nbeing known for its abundant natural gas reserves.<\/p>\n<p>According to Bahlil, the main issue is not the general availability\nof gas, but the type of gas content that Indonesia possesses. LPG\nrequires specific components in the form of propane (C3) and butane\n(C4), whereas the majority of Indonesia\u2019s natural gas is dominated by\nmethane (C1) and ethane (C2).<\/p>\n<p>\u201cThe problem is the question I always get: why don\u2019t we produce LPG\ndomestically? We have abundant gas. We no longer import gas. All gas is\nnow for domestic industry. We even export 30% of our total gas lifting.\nBut why do we import LPG? Because LPG\u2019s raw materials are C3, C4\u2026 C3 and\nC4 are different from most of our gas; our gas is C1, C2. C3 and C4 are\nlimited, that\u2019s why our domestic industry for it is small,\u201d said Bahlil\nat the IPB Alumni Synergy for the Nation event on Saturday\n(2\/4\/2026).<\/p>\n<p>Bahlil explained that the limitation in C3 and C4 content means\ndomestic LPG production is unable to meet national needs. Currently,\nIndonesia\u2019s LPG requirement is around 8.6 million tonnes per year, while\ndomestic production is only in the range of 1.6 to 1.7 million\ntonnes.<\/p>\n<p>With this gap, Indonesia still has to import about 7 million tonnes\nof LPG every year. He then highlighted the significant burden borne by\nthe state due to LPG imports.<\/p>\n<p>Bahlil revealed that the foreign exchange spent on LPG imports\nreaches Rp137 trillion per year, with subsidies amounting to around Rp80\ntrillion to Rp87 trillion.<\/p>\n<p>\u201cOut of that Rp137 trillion, the state subsidises Rp80 to Rp87\ntrillion per year, folks. Don\u2019t applaud; this is sad for me. It\u2019s sad. I\nsit and think: are we smart or half-smart?\u201d he said.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/indonesias-abundant-gas-reserves-why-still-importing-lpg-bahlil-explains-1777982001",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}