Indonesian Political, Business & Finance News

Bahlil States This LPG Substitute Gas is More Efficient, Here's the Proof

| Source: CNBC Translated from Indonesian | Energy
Bahlil States This LPG Substitute Gas is More Efficient, Here's the Proof
Image: CNBC

Jakarta, CNBC Indonesia - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia stated that the use of Compressed Natural Gas (CNG) has proven more efficient. This is because it is already being used in several hotels and restaurants.

“In terms of efficiency, we are seeking ways to convert the raw materials available in our country to replace LPG. That’s the idea. When will this be completed? We’ll wait for the trial of the 3-kilogramme cylinder,” Bahlil explained when met at the Ministry of ESDM office on Wednesday (6/5/2026).

Bahlil revealed that the utilisation of CNG is not something new, as 12-kilogramme to 20-kilogramme cylinders have already been in use for commercial needs.

“But for CNG, the 12-kilo and 20-kilo ones are already operational, used in hotels and restaurants. And it’s good, and more efficient,” Bahlil said.

Nevertheless, the government is still studying the development of 3-kilogramme CNG cylinders so that they can be used by households as an alternative to subsidised LPG.

“But we can’t possibly ask the people to use the heavy ones, 20 kg. Now, this is what we’re working on. And we’ve actually been doing this for a year now. But to get the 3-kilogramme technology, we’re testing it,” he said.

On the other hand, Bahlil said the government is endeavouring to ensure that the selling price of CNG will eventually be equivalent to the price of 3 kg LPG currently used by the public.

Bahlil explained that the government is still conducting trials and studies before the full implementation of the programme. Thus, the pricing scheme and distribution mechanism are still being refined.

“Later, later. That’s why we’re trialling it. This hasn’t been implemented yet, okay. I repeat, this is still in the exercise phase,” he said.

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