ESDM states CNG can save up to 30% in subsidies compared to LPG

Jakarta (ANTARA) - The Ministry of Energy and Mineral Resources (ESDM) has stated that the use of Compressed Natural Gas (CNG) as a replacement for 3kg LPG can save up to 30% in subsidies. “With the same content and the same price as 3kg LPG, we can save 30%. The subsidy for CNG is lower than for LPG,” said the Director General of Oil and Ground Gas (Dirjen Migas) of the Ministry of ESDM, Laode Sulaeman, at the “CNG & LNG for the People” event in Jakarta on Tuesday. Furthermore, Laode explained that LPG requires a larger budget because it not only needs subsidies but also must be imported from abroad. “So, there are actually two burdens from LPG. It’s already subsidised, and it’s imported. This also expends our foreign exchange,” he said. Therefore, after calculations, Laode is convinced that Indonesia can save 20-30% of its subsidies if it switches from LPG to CNG. These figures, Laode continued, can still be simulated further as they are initial estimates. “That means, why not utilise this? The gas is also from our own resources, so we don’t need to buy from outside,” said Laode.