CNG as LPG Replacement Targeted for Implementation This Year
The Ministry of Energy and Mineral Resources (ESDM) is targeting the implementation of compressed natural gas (CNG) as an alternative to liquefied petroleum gas (LPG) to begin this year.
The Director General of Oil and Gas (Dirjen Migas) of the Ministry of ESDM, Laode Sulaeman, explained that the government is currently preparing a pilot project for the CNG programme to replace LPG.
He stated that the transition to CNG cylinders will be carried out gradually, while preparing the infrastructure and safety for public use.
“This year there will already be several pilot projects. This year there will be,” he said when met in Jakarta on Wednesday (13/5/2026).
The government is currently conducting analysis, particularly regarding the safety standards of the gas cylinders to be used. The regulation drafting process involves cross-ministerial coordination.
“So as announced by the Minister, we are now analysing various aspects. One important aspect is the safety aspect. The safety aspect is not only from the Ministry of ESDM, but also from the Ministry of Industry, the Ministry of Manpower, and BSN which issues the standards,” he added.
Although intended as a replacement, his side emphasised that the distribution of CNG will be carried out in a measured manner through various stages. The oil and gas authority is currently consolidating with related agencies to ensure the safety standards of the gas cylinders to be distributed to the public.
“Actually, alternative and replacement mean the same thing. But if we say replacement, it’s massive and large, if alternative, we have stages. The correct one is that we have stages,” he concluded.
Previously, Laode also mentioned that the plan to implement the use of compressed natural gas will not immediately target all regions of Indonesia simultaneously. In the initial phase, distribution will be prioritised for major cities on Java Island to test the effectiveness of the distribution simulation, before being expanded to other areas.
“Gradually in major cities first in Java. The roadmap is of course we have it because this has not been announced by the Minister, but the point is that in the future we will reduce our LPG, we will replace it with CNG,” Laode explained at an event held by ASPEBINDO in Jakarta, quoted on Tuesday (12/5/2026).
The use of CNG is projected to provide savings in subsidy costs of up to 30% because the gas source comes entirely from domestic oil and gas fields.
In addition to foreign exchange efficiency, the government ensures that safety aspects are the top priority by preparing Type 4 tank technology made of composite fibre material which is claimed to be lighter and stronger.
“Research for us to use CNG has been quite long and there are two important components in the tank and valve parts that require technology which finally today has been found and can be implemented,” he said.