Global Oil Turmoil Prompts Projo to Propose Government Body for Controlling Subsidised LPG

Projo has proposed that the government form a special body to control subsidised LPG following the turmoil in the global oil market. Projo assesses that the high proportion of LPG imports, reaching 70-80 percent, indicates significant dependence of domestic consumption on global crude oil price dynamics.

“We should not get trapped in the figure that the supply from Hormuz is only 20% of national needs. We should focus on the availability of crude oil in the world market accompanied by exponentially rising prices,” said the Chairman of the Projo Central Executive Board for Defence and Strategic Studies, Abi Rekso, in his statement on Wednesday (18/3/2026).

“We cannot yet intervene in the global crude oil market, so what we can do is regulate LPG consumption to be appropriate and targeted. Therefore, I propose that the government immediately form the Subsidised LPG Control Agency,” he continued.

Abi Rekso explained that if there is a shortage of LPG, it cannot be entirely blamed on the government, as many countries are also facing import difficulties. However, he believes the state has a responsibility to ensure that subsidised goods reach vulnerable communities in accordance with the mandate of the 1945 Constitution.

“Perhaps the Subsidised LPG Control Agency would be established on an ad hoc basis under a Presidential Regulation. The Minister of Energy and Mineral Resources as the implementing chair, involving Pertamina, TNI-POLRI, Regional Heads, and Civil Society Networks. This is not about distributing subsidised LPG; this body ensures that supplies for vulnerable groups and SMEs remain secure. Because BPH-Migas does not function in that way,” said Abi Rekso.

Previously, the Minister of Energy and Mineral Resources, Bahlil Lahadalia, guaranteed that LPG supplies are ensured to be safe until Eid al-Fitr. Minister Bahlil also explained that Indonesia imports 70%-75% of its total LPG needs of 9 million tonnes per year.

“What we import from the Middle East, sir, is the crude. So 20% of the crude oil is indeed from the Middle East. The rest we get from Angola, Nigeria, Brazil, then some from America, some from Malaysia,” Bahlil explained in a cabinet meeting before President Prabowo.