Indonesia to Introduce 3kg CNG as LPG Alternative with Subsidies!

The Ministry of Energy and Mineral Resources (ESDM) is preparing an alternative energy source to replace Liquefied Petroleum Gas (LPG). That energy is Compressed Natural Gas (CNG). Currently, the government is conducting development trials for CNG in a 3-kilogram (kg) form. In the future, once it is available, the government will provide subsidies for CNG just like for 3kg LPG. Energy Minister Bahlil Lahadalia stated that the policy of subsidising CNG aligns with President Prabowo Subianto’s directives for the national energy programme to remain supportive of those in need. “The President’s directive is that both CNG and LPG will always prioritise helping the people who truly need our assistance. Therefore, I assure you that subsidies must still be provided for the people,” Bahlil said after his inauguration at the Ministry of ESDM on Wednesday (6/5/2026). Therefore, the government is also working to ensure that the selling price of CNG in the future can be equivalent to the current 3kg LPG price used by the public. “Pray for that. At least the same. At least the same,” Bahlil said. Currently, the government is still in the trial and study phase before full implementation of the programme. Thus, the pricing scheme and distribution mechanism are still being refined. “Later, later. That’s why we’re trialling it. This hasn’t been implemented yet. I repeat, this is still in the exercise phase,” he said. 30% Cheaper Price Bahlil assessed that the use of CNG has actually already been implemented for 12-kilogram to 20-kilogram cylinders used by hotels and restaurants. The use of CNG in that sector is considered quite efficient. However, the government is now developing 3-kilogram CNG cylinder technology to better suit household use. “But for CNG, the 12kg and 20kg ones are already in use for hotels and restaurants. And it’s good, and more efficient. But we can’t ask the people to use the heavy ones, 20kg. Now, this is what we’re working on,” Bahlil said. The gas alternative is even considered to be cheaper than LPG use. According to studies, Bahlil said that CNG use could be 30% cheaper. “CNG has already been studied. The price is much cheaper, around 30% cheaper,” Bahlil explained after being met at the State Palace on Tuesday (5/5/2026). Why is it cheaper? Bahlil explained that CNG’s raw material, gas, is abundant in Indonesia, supported by domestic industry. “So we don’t import, the transportation costs alone can cover it,” Bahlil revealed. In addition, CNG gas is available in almost all regions with gas sources. Thus, this can be more efficient.