Indonesia to Trial CNG as LPG 3 kg Substitute Next Week

Jakarta, CNBC Indonesia - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia plans to conduct a public trial of 3 kilogram (kg) Compressed Natural Gas (CNG) next week. The project is intended to serve as an alternative replacement for 3 kg Liquefied Petroleum Gas (LPG), the supply of which is still largely met through imports.

The replacement canisters for 3 kg LPG are currently in the final testing phase by the Oil and Gas Testing Centre (Lemigas) before they can be trialled by the public. This is to ensure that the 3 kg CNG is genuinely safe for use prior to large-scale commercialisation.

“The trial will be next week. We will check it,” said Bahlil when asked when the public trial of 3 kg CNG would take place, as met at the Ministry of Finance office in Jakarta, quoted on Wednesday (12/8/2026).

Meanwhile, Director General of Oil and Gas at the Ministry of ESDM Laode Sulaeman said the compressed natural gas programme is designed to have a more efficient subsidy scheme compared to the existing 3 kg LPG.

The government projects that the use of CNG canisters will deliver subsidy savings for the state budget because it utilises domestic gas sources.

“He conveyed that it is subsidised but the subsidy saves 30–40%, meaning the subsidy is still lower than the LPG subsidy. That is the point,” Laode explained on the same occasion.

“Yes, it is equivalent to 3 kilos. One 3 kg LPG canister will later be made equivalent to one CNG canister equal to 3 kilograms of LPG,” Laode added.

The government hopes that next week’s trial can serve as a foundation for expanding the distribution reach of CNG nationally.