CNG Seen as Capable of Reducing LPG Imports, but Infrastructure is the Main Prerequisite

The government is currently trialling the use of compressed natural gas (CNG) in 3-kilogram cylinders as an alternative replacement for subsidised liquefied petroleum gas (LPG). This step is being taken amid Indonesia’s high dependence on LPG imports, with consumption reaching 8.6 million tonnes per year, while domestic production is only around 1.6 million to 1.7 million tonnes. Minister of Energy and Mineral Resources Bahlil Lahadalia revealed that the trial of CNG for 3 kg cylinders is still underway because the gas pressure produced is quite high. CNG pressure reaches 200-250 bar or equivalent to 2,900-3,600 psi. “For the 3-kilogram size, the cylinder is still in the trial stage because the pressure is quite high. In the next two to three months, we hope to have results,” Bahlil said, quoted from Antara on Tuesday (5/5/2026). If the trial succeeds, the price of CNG is estimated to be much more affordable. “For the 3-kilogram one, it’s just about to be made. And this cost is 30-40 percent cheaper,” Bahlil stated while attending an event of the IPB Alumni Association in Jakarta on Saturday (2/5/2026). The Ministry of Energy and Mineral Resources is also examining subsidy schemes, although the mechanism and volume are still being discussed. “Everything is still being studied, including the possibility of subsidies and the amount of the volume,” Bahlil said. “CNG can become a concrete solution to reduce LPG imports while strengthening energy resilience,” said Jamaludin in his statement on Tuesday (5/5/2026). He urged the government not to stop at the 3 kg cylinder scheme but to expand the utilisation of CNG to the transportation sector, hospitality, residential areas, apartments, and other commercial sectors. “This expansion of utilisation is important to create a strong economy of scale, so that the use of domestic gas can run optimally and sustainably,” he emphasised. Jamaludin also stressed the need to accelerate the construction of supporting infrastructure, from CNG filling stations, compression facilities, to integrated distribution systems, as a key factor in the success of this policy. The Institute for Essential Services Reform (IESR) stated on its official Twitter account on Sunday (3/5/2026): “CNG can reduce LPG imports and emissions. CNG is good as a substitute for LPG for commercial customers, large kitchens, culinary SMEs, hotels/restaurants, and areas where supplies are close to gas infrastructure.” “But not yet ready to be a direct replacement for 3 kg LPG,” IESR continued. IESR highlighted several technical challenges, namely the need for high-pressure cylinders, special stoves and regulators, more complicated distribution, and strict safety standards. “Calculate the costs and risks. Conduct trials before widespread implementation. Don’t be hasty, people safety should be no. 1,” IESR emphasised.