House Commission VII: CNG Development is a Strategic Step to Strengthen Energy Resilience
Dependence on imported LPG remains very high, with more than 70 per cent of national needs met through imports. This burdens the trade balance and fiscal finances through energy subsidies.
Jakarta (ANTARA) - Deputy Chairman of the House of Representatives Commission VII, Lamhot Sinaga, views the development of compressed natural gas (CNG) as a strategic step to strengthen energy resilience while enhancing cost efficiency in the industrial sector.
The statement was made by Lamhot in response to the government’s plan through the Ministry of Energy and Mineral Resources (ESDM) to position CNG as an alternative replacement for liquefied petroleum gas (LPG).
“Dependence on imported LPG remains very high, with more than 70 per cent of national needs met through imports. This burdens the trade balance and fiscal finances through energy subsidies,” said Lamhot in a statement received in Jakarta on Tuesday.
He assessed that the utilisation of CNG sourced from domestic natural gas is a rational solution, given that Indonesia has substantial gas reserves that have not yet been optimally utilised, particularly in the downstream sector.
“Most are still reliant on oil-based energy and LPG,” he stated.
According to Lamhot, the high energy consumption in the industrial sector provides a strong rationale for accelerating the transition to more efficient and sustainable alternative energy sources.
“If a portion of industrial energy consumption is shifted from fuels (BBM) and LPG to CNG, production cost efficiency can improve and the competitiveness of the national industry will be boosted,” he said.
From an economic perspective, he continued, CNG is deemed more competitive compared to oil-based energy, whose prices fluctuate following global markets.
“The country can reduce imports and energy subsidies, while the industrial sector obtains cheaper, stable, and environmentally friendly energy,” he stated.
Lamhot added that the use of CNG also produces lower carbon emissions compared to BBM and LPG, thus aligning with Indonesia’s target to achieve net zero emissions by 2060 or sooner.
Commission VII of the House of Representatives, he said, will push for energy transition policies from oil-based to alternatives such as natural gas, including CNG.
“This is a rational transitional step before fully switching to renewable energy,” he stated.
He also highlighted the role of state-owned energy enterprises, such as PT Perusahaan Gas Negara Tbk, which has operated several natural gas refuelling stations (SPBG) and serves industrial customers.
“This means we are not starting from scratch. Infrastructure already exists and needs to be expanded and integrated with appropriate policies,” he said.
“If the ecosystem is built well, CNG has the potential to become the backbone of the national energy transition in the medium term,” he added.
He emphasised that energy diversification is essential amid global geopolitical dynamics that affect energy prices.
“This momentum must be seized with consistent policy execution,” he stated.