Indonesian Political, Business & Finance News

Government Trials 3kg CNG Cylinder Distribution Using Closed Trucks

| Source: CNBC Translated from Indonesian | Energy
Government Trials 3kg CNG Cylinder Distribution Using Closed Trucks
Image: CNBC

The Ministry of Energy and Mineral Resources (ESDM) has revealed plans to trial the use of Compressed Natural Gas (CNG) within the Micro, Small, and Medium Enterprises (MSME) sector. One of the trials being conducted involves a CNG cylinder distribution system using closed trucks.

The Director General of Oil and Gas at the Ministry of ESDM, Laode Sulaeman, explained that the CNG usage trial has now entered its third week. The government is continuously evaluating all operational criteria before conducting a comprehensive review in the fourth week.

“We have entered the third week. Data is being continuously evaluated and checked daily to identify what can be improved and which points need assessment. After one month, we will conduct a review of all related aspects, such as the requirement that CNG must be delivered in containers or trucks that are not open-bed,” said La него when met at the Ministry of ESDM Building, Jakarta, on Wednesday (30/09/2026).

Once the four-week evaluation period is complete, the government will proceed to the discussion stage regarding the governance scheme and supply chain. These discussions will cover the mechanisms for determining sellers, cylinder providers, and the designation of gas refilling locations.

“The next stage is to discuss the scheme. We will determine what the scheme for this CNG will look like, who will sell it, who will supply the cylinders, and where the gas will be refilled,” Laode added.

Regarding the availability of CNG cylinders, Laode admitted that Indonesia does not currently have factories capable of producing cylinders that meet the required technical specifications. Consequently, the cylinders used in the current limited trial are being imported from abroad. The government is prepared to enter into agreements with CNG manufacturers in China if the project moves into the commercial production stage.

“That is what we are currently testing, because in Indonesia, there is no factory that can produce them with those specifications, so what is being tested now is still made there. If there is to be massive production in the future, we will certainly need to have bargaining power with the industry in China,” he explained.

The procurement of these cylinders is currently intended specifically for a limited trial scale. The government will establish a definitive scheme for mass production once all stages of initial evaluation and review are finalised.

“That is only for the limited trial. For mass production, it will follow once the scheme I mentioned earlier has been established,” he concluded.

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