Bahlil Assures LPG Supply Security, Increases Imports from Australia and the United States

Jakarta — Indonesia’s Energy and Mineral Resources Minister Bahlil Lahadalia has assured the public that the nation’s liquefied petroleum gas (LPG) supply is secure. This reassurance comes as the world faces energy supply shortages amid escalating geopolitical tensions in the Middle East.

Bahlil stated that Indonesia will increase LPG import shipments from Australia, with additional cargoes expected to arrive by the end of the previous week. “By the end of this week, we received two cargoes from Australia for LPG. Then on the 28th of this month, two more cargoes will arrive,” he told President Prabowo Subianto during a Full Cabinet Session at the State Palace in Jakarta on Friday, 13 March 2026. “So January, February, March, April should be clear, God willing,” he added.

Bahlil explained that the decision to source LPG from Australia forms part of an import diversification strategy to address global geopolitical dynamics, particularly the escalating tensions in the Middle East region. “With the current situation in the Middle East, we have also sought long-term contracts with America and several other countries, including Australia,” he stated.

Regarding current reserve levels, Bahlil reported that national LPG stock resilience stands at 15.66 days, exceeding the minimum reserve threshold established, so the public should not be concerned about supply shortages. “We report to the President, Vice President, and all cabinet members. Fuel and LPG reserves heading into the holidays should be secure, God willing,” he concluded.

Beyond Australian imports, Indonesia currently imports approximately 7.6 million tonnes of LPG annually to meet domestic needs. Of this total, approximately 70-75% of LPG supply this year will be imported from the United States, up from the previous approximately 50%, with 20% sourced from the Middle East and the remainder from other countries such as Australia.

“Now we have redirected 70% of our LPG imports from America. So there is no need for concern. The government, with respect under President Prabowo’s orders, is not sleeping. We are continuously seeking access, continuously finding solutions. Alongside fasting, we are not sleeping, we are pushing hard. Thinking about the nation’s fuel is not a short-sighted approach,” Bahlil said in the Energy and Mineral Resources Ministry’s “Bukan Abuleke” podcast, cited on Thursday, 12 March 2026.

Previously, the Executive Director of ReforMiner Institute, Komaidi Notonegoro, reminded the government to anticipate risks of energy distribution disruption, particularly LPG which affects basic household needs. According to Komaidi, beyond petroleum, LPG supply risk is equally important. Domestic LPG consumption reaches approximately 9 million metric tonnes annually, whilst domestic production is only about 1.8 million metric tonnes.

“LPG domestic consumption per year is 9 million metric tonnes. Whilst domestic production is only 1.8 million metric tonnes, meaning 7.2 million metric tonnes must be imported annually from two main sources,” Komaidi told CNBC Indonesia on Tuesday, 3 March 2026.

Approximately 52% of Indonesia’s LPG imports come from the United States and the remaining 48% from the Middle East. Currently, both sources are involved in regional conflicts with escalating tensions.