ESDM: CNG Usage to be Implemented Gradually

Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM), Laode Sulaeman, stated that the utilisation of compressed natural gas (CNG) in 3-kilogram cylinders for households will be carried out gradually. The government has not yet confirmed that CNG can fully replace 3-kilogram LPG in the near future.

“If we say replacement, that means massive and very large. So there are stages,” Laode said when met at the ESDM Ministry office in Jakarta on Wednesday, 13 May 2026.

Currently, the Ministry of ESDM is still completing safety tests for the distribution of CNG in 3-kilogram cylinders, similar to the distribution of subsidised LPG. According to Laode, safety aspects are the primary requirement before the programme is implemented for households.

“This involves cross-ministerial coordination and the National Standardisation Agency which issues the standards,” he said.

Previously, Laode explained that the utilisation of CNG is expected to reduce Indonesia’s dependence on liquefied petroleum gas (LPG) imports. To date, LPG imports have been a major burden on the state budget, with subsidy values reaching Rp 80.3 trillion per year.

According to calculations by the Ministry of ESDM, substituting LPG with CNG has the potential to save up to 30% of the total subsidy budget. “With the same price as 3-kilogram LPG, the state can save 30% because CNG subsidies are lower than LPG subsidies,” Laode said.

Although both are in gas form, CNG and LPG have fundamental differences. CNG comes directly from natural gas, which mostly contains methane. The gas is purified and then compressed at high pressure without being converted to liquid.

Meanwhile, LPG is a product of crude oil or natural gas processing, separated into propane and butane at refineries, then liquefied for easier storage and distribution. Due to these process differences, CNG remains in gas form inside high-pressure cylinders. LPG is stored in liquid form and turns into gas when used.

In Indonesia, LPG has been more commonly used by households because it is practical to distribute in cylinders. Meanwhile, CNG is more widely used in the industrial sector and urban gas networks through pipeline distribution.

However, Laode said that CNG distribution does not have to rely on pipeline networks. As an alternative, CNG can be channelled using high-pressure cylinders made of special materials capable of containing compressed gas.

According to him, this distribution scheme is not new because it has been used on a limited basis in the commercial sector, such as restaurants and hotels. In terms of safety, Laode assured that CNG cylinder technology has advanced to the fourth generation and is considered reliable enough.

“The most important thing is that it has been patented. I target obtaining the patent within three months. So it’s not about creating new and assembling cylinders,” Laode said.