As LPG Alternative, Bahlil Trials 3 Kg CNG

Jakarta, CNBC Indonesia - The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has revealed that the government is studying the development of 3-kilogram Compressed Natural Gas (CNG) as an alternative to subsidised LPG.

According to Bahlil, this step is being taken to reduce Indonesia’s dependence on LPG imports, which continue to burden the country’s foreign exchange reserves.

“This CNG is for 3 kilograms; we are still conducting exercises and trials on the cylinders. This CNG is expected to serve as one alternative in substituting our large imports,” Bahlil said after the inauguration event at the Ministry of ESDM on Wednesday (6/5/2026).

Bahlil explained that to meet domestic consumption needs, Indonesia currently imports around 8.6 million tonnes of LPG per year. This situation requires the government to spend a significant amount of foreign exchange annually.

“Imagine, we import 8.6 million tonnes per year for consumption. At the same time, our foreign exchange is spent just on buying LPG, around Rp 130 to Rp 140 trillion every year. Especially with current global oil prices like now, it will definitely be even larger. And our subsidies are Rp 80 to Rp 87 trillion,” he stated.

Bahlil noted that the use of CNG has actually already been implemented for 12-kilogram to 20-kilogram cylinders used in hotels and restaurants. The use of CNG in that sector is considered quite efficient.

However, the government is now developing 3-kilogram CNG cylinder technology to make it more suitable for household use.

“But for this CNG, the 12 kg and 20 kg ones are already in use for hotels and restaurants. And it’s good, and more efficient. But we can’t ask the people to use the heavy ones, 20 kg. So, this is what we’re working on,” Bahlil said.