Get Ready! Bahlil Urges Indonesians to Use CNG to Reduce LPG Imports

Energy and Mineral Resources Minister Bahlil Lahadalia has urged the public to use Compressed Natural Gas (CNG) in a bid to reduce Indonesia’s dependence on imported LPG. He noted that national LPG consumption stands at 8.5 million tonnes per year, while domestic production is only 1.8 million tonnes, resulting in an annual foreign exchange drain of Rp 150 trillion. Speaking at the CNBC Indonesia Energy Forum, Bahlil described global geopolitical developments as akin to a ‘malaria’ sickness, fluctuating and impacting the global economy. Amid this uncertainty, Indonesia still imports 1 million barrels of crude oil per day due to declining domestic lifting from ageing wells. To address this, the government is focusing on three strategies: deploying advanced technology, accelerating exploration in Eastern Indonesia across 118 potential new oil and gas blocks, and reactivating idle wells. Bahlil also highlighted that national diesel consumption has reached 39 million kilolitres, prompting the government to push for palm oil downstreaming through the development of B50 biodiesel, set to commence on 1 July 2026. With petrol consumption at 40 million kilolitres, efforts are underway to reduce imports from Singapore and Malaysia. He confirmed that the government will not raise subsidised fuel prices, which cost the state Rp 200-250 trillion, to protect the poor, while noting that price increases for non-subsidised fuel are reasonable as they are consumed by the wealthy. The minister also addressed recent power outages experienced by state utility PLN, stressing the need to secure coal supplies to ensure electricity resilience.