Indonesian Political, Business & Finance News

Demand to Exceed Quota, ESDM to Strengthen 3 kg LPG Consumer Data for Better Targeting

| Source: VIVA Translated from Indonesian | Energy
Demand to Exceed Quota, ESDM to Strengthen 3 kg LPG Consumer Data for Better Targeting
Image: VIVA

Jakarta – Ministry of Energy and Mineral Resources (ESDM) spokesperson Dwi Anggia said the ministry will strengthen the database of 3 kg LPG recipients to improve distribution governance so that the subsidised product can be targeted accurately.

“For 3 kg LPG, the government is strengthening the database so we know who is actually entitled to receive the subsidy,” Anggia said on Monday, 31 August 2026.

She made the statement in relation to projected demand for 3 kg LPG, which is expected to exceed the quota in the 2026 State Budget (APBN).

Actual distribution of 3 kg LPG up to July 2026 reached 5.05 million tonnes, against a quota of 8 million tonnes in the 2026 APBN.

The Ministry of Energy and Mineral Resources projects that by the end of 2026, distribution of 3 kg LPG will reach 8.677 million tonnes, or 108.46 percent of the quota. Meanwhile, for 2027, projected consumption of 3 kg LPG could be higher than in 2026.

Citing the 2027 Draft State Budget (RAPBN), the volume quota for 3 kg LPG is set at 8.9 million tonnes, higher than the 3 kg LPG quota in the 2026 APBN.

Anggia said the solution to the 3 kg LPG subsidy problem is not simply to increase the quota.

“If the solution is only to increase the quota, the subsidy problem will never be resolved. What we must fix is the governance,” Anggia said.

Therefore, the Ministry of Energy and Mineral Resources is currently strengthening the database so that 3 kg LPG can be distributed accurately to people who are entitled to receive the subsidy.

Anggia said system reform is a long-term solution for 3 kg LPG distribution.

“So, there are two principles that must go hand in hand: energy availability for the people must be guaranteed, but subsidies must also be increasingly well targeted,” she said.

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