Get Ready: Indonesia to Have 2 New LPG Plants in 2026, Here's Their Production Capacity
The Special Task Force for the Implementation of Upstream Oil and Gas Business Activities (SKK Migas) has revealed that the government is accelerating the development of several Liquefied Petroleum Gas (LPG) plants across various regions, particularly to increase domestic supply.
SKK Migas Head Djoko Siswanto stated that at least two LPG plant projects are scheduled to be inaugurated soon. Among them are the LPG plant in Cilamaya with a production capacity of 163 metric tonnes per day and the LPG Plant in Tuban with a capacity of 30 tonnes per day.
“It can produce 163 metric tonnes of LPG per day, with condensate at 1,891 barrels of oil per day (bopd). There is also an LPG plant and mini LNG plant, which can increase or add to this production; it will be inaugurated in April at 30 metric tonnes per day, with condensate at 348 bopd,” Djoko said during a Working Meeting with Commission XII of the House of Representatives, quoted on Thursday (9/4/2026).
Thus, the total additional LPG production to be inaugurated in April 2026 is estimated to reach around 200 metric tonnes per day.
“Insya Allah, the President also plans to inaugurate these LPG plants. So, the one in April is 163 plus 30, roughly around 200 metric tonnes per day; this can be inaugurated this April,” he said.
Furthermore, SKK Migas is preparing several follow-up projects to enhance national LPG production capacity. One of them is the construction of the LPG plant in Jambi Merang, targeted to produce 320 metric tonnes per day with condensate at 3,700 bopd.
The project is estimated to come online in the second quarter of 2027. In addition, the government will begin construction of the LPG plant in Senoro with a production capacity of 54 metric tonnes per day, expected to come online in 2027.
“Then, to increase the LPG plant capacity in East Java, we will produce or build an additional plant to expand it, at 50 metric tonnes per day,” he said.
Rising LPG Demand
The Directorate General of Oil and Natural Gas (Ditjen Migas) of the Ministry of Energy and Mineral Resources (ESDM) recorded an increase in daily LPG demand in early 2026.
In 2025, daily LPG demand reached 25,000 metric tonnes per day. Meanwhile, data for February 2026 reached 26,000 tonnes per day.
To support the security of LPG needs, Indonesia still relies on imports because domestic production is still far below the daily needs of the population.
Up to April 2026, Indonesia’s largest LPG imports come from the United States (US) at 68.91%, from the United Arab Emirates at 11.83%, and from Saudi Arabia at 7.36% of total imports.
The rest, Indonesia imports LPG from Qatar, Australia, Kuwait, and China.
“From the graph we presented, it is clear that domestic production is still far below needs, so LPG imports continue to dominate the national supply,” explained Secretary of the Directorate General of Oil and Gas Muhammad Rizwi Jilanisaf Hisjam during a Working Meeting with Commission XII of the House of Representatives, on Thursday (9/4/2026).
To reduce the import portion, the government is also shifting naphtha raw materials at domestic refineries such as the RDMP Balikpapan to enrich LPG products.
“With all the strategic mitigation steps we have taken, we can affirm that the national supply of fuel and LPG is currently secure,” he emphasised.