3 kg LPG Distribution Scheme to Be Changed, When Will It Take Effect?
Jakarta, CNBC Indonesia - The government plans to issue several policies related to controlling energy subsidies, particularly for 3 kg LPG, in 2027. This is being done to make energy subsidy distribution more targeted.
Based on the 2027 State Budget Financial Note, the government plans to transform the distribution of 3 kg LPG cylinder subsidies to be more targeted and also evaluate the retail selling price of 3 kg LPG in line with economic conditions and public purchasing power.
“The government will also transform the 3 kg LPG cylinder subsidy policy from a commodity-based subsidy to a beneficiary-based subsidy,” the 2027 State Budget Financial Note stated, quoted on Monday (31/8/2026).
In the 2027 State Budget Financial Note, efforts that have been made to implement the LPG subsidy transformation policy include preparing a database used as a reference for distributing 3 kg LPG cylinders, such as developing consumer data collection features based on the Population Identification Number, matching data with the Extreme Poverty Eradication Acceleration Targeting data, and preparing 3 kg LPG distribution infrastructure.
In line with this, starting January 2024, purchases of 3 kg LPG cylinders at official agents can only be made by users who have been registered in a web-based system and/or application.
“Thus, 3 kg LPG cylinder users can be registered to support Indonesia’s readiness towards equitable 3 kg LPG cylinder distribution,” it said.
Efforts to control subsidies are also triggered by energy subsidies that continue to swell every year, including an estimated surge in subsidies next year.
Based on data from the 2027 State Budget Financial Note, in 2026, energy subsidies are estimated to reach Rp 227.3 trillion, up 19.6% from energy subsidies in 2025 which were recorded at Rp 185.2 trillion, and also higher than 2024’s Rp 177.6 trillion.
In fact, in 2027 energy subsidies are estimated to jump again to Rp 272.9 trillion.
Of the estimated energy subsidy of Rp 227.3 trillion in 2026, the 3 kg LPG subsidy is estimated to reach Rp 90.4 trillion. In 2027, the 3 kg LPG subsidy is even estimated to rise again to Rp 114.1 trillion.
The subsidy policy in 2027 is stated to be directed at “continuing efforts to transform the 3 kg LPG cylinder subsidy to be targeted, becoming beneficiary-based and integrated with accurate beneficiary data.”
The policy includes, among other things, collecting data on 3 kg LPG cylinder users based on technology so that 3 kg LPG cylinder users are users who have been registered and listed in the National Socio-Economic Data.
“The implementation of this transformation is carried out in stages by considering data readiness, infrastructure, and the economic and social conditions of the community,” it added.
The calculation of the 3 kg LPG cylinder subsidy budget in the 2027 State Budget uses an assumption of 3 kg LPG cylinder volume of 8.94 million metric tons. This means there is an increase from the 3 kg LPG quota in 2026 which was set at 8 million metric tons.
LPG Consumers According to Decile
In line with this policy, the Ministry of Energy and Mineral Resources also plans to tighten the distribution of 3 kg LPG by limiting the community groups that can purchase subsidised LPG based on welfare deciles.
Director General of Oil and Gas at the Ministry of Energy and Mineral Resources Laode Sulaeman said the policy is needed so that 3 kg LPG distribution is more targeted. The government is currently discussing the application of welfare or decile data to determine community groups entitled to receive LPG subsidies.
“So, that’s why we are currently intensifying conversion. Conversion, then the class that gets it is regulated to be more targeted. The decile will be regulated for LPG. Not only for fuel,” Laode said at the House of Representatives building, quoted on Thursday (27/8/2026).
According to him, his party will also discuss the use of the data with Statistics Indonesia and PT Pertamina. The discussion is a follow-up to a meeting between the Minister of Energy and Mineral Resources and the Minister of Finance some time ago.
“That is one of the things we will discuss with BPS, Pertamina, in implementing the results of the meeting between the Minister of Energy and Mineral Resources and the Minister of Finance,” he said.
Previously, PT Pertamina Patra Niaga and the Directorate General of Population and Civil Registration of the Ministry of Home Affairs signed a Cooperation Agreement on Granting Access Rights and Utilisation of Population Data in Services within the Scope of PT Pertamina Patra Niaga.
The cooperation is expected to strengthen the data verification and validation process to support more targeted distribution of subsidised energy. This cooperation agreement also supports the implementation of Minister of Energy and Mineral Resources Decree Number 37 of 2023 concerning Technical Guidelines for the Transformation of Targeted LPG Subsidies, as well as being the basis for system integration that has been prepared by Pertamina Patra Niaga for NIK validation in 3 kg LPG distribution.