Indonesia's LPG Needs to Increase by 10 Million Tonnes by 2027, Here's Why

The Ministry of Energy and Mineral Resources (ESDM) has revealed that by 2027, Indonesia’s demand for liquefied petroleum gas (LPG) will increase to 10 million tonnes per year. Energy and Mineral Resources Minister Bahlil Lahadalia stated that this surge is triggered by household consumption as well as new industrial sectors. “We know that our LPG from total consumption is 8.6 million. Even in 2026-2027, it will increase with the addition of industry from Lotte. Lotte needs about 1.5 million tonnes per year. So overall, we need around 10 million tonnes of LPG. Related to that, we are also seeking new markets. Our total production is only 1.6 million,” Bahlil said at the Ministry of ESDM some time ago, quoted on Friday (24/4/2026). According to Bahlil, with production at only about 1.6 million tonnes, Indonesia still heavily depends on imports to meet its LPG needs. Therefore, exploring purchases of LPG from Russia is quite important. The negotiation for importing LPG from Russia is currently in the finalisation stage. The government is continuously working to accelerate the process to secure supplies amid global geopolitical uncertainties. “So we must seek new markets, including in Russia. Insha Allah, Russia is now in the finalisation stage for LPG. Yes, we pray it can be completed quickly,” Bahlil said. Previously, Bahlil reported to President Prabowo Subianto that the government has secured crude oil supplies from Russia. This was stated by Bahlil after a limited meeting at the State Palace, Jakarta, on Thursday (16/4/2026). As is known, Bahlil met with Russian Energy Minister Sergey Tsivilev on Tuesday (15/4/2026). This meeting is a follow-up to high-level talks between President Prabowo and Russian President Vladimir Putin at the Kremlin the day before. Not only securing crude oil supplies, from the meeting results, according to him, Indonesia also obtained commitments from the Russian side to build infrastructure in Indonesia to enhance energy resilience. “Alhamdulillah, yesterday following the President’s instructions, I met with the Energy Minister and the Special Envoy from President Putin, and the news is quite encouraging that we will receive crude supplies from Russia and also the Russian side is ready to build several important infrastructures to increase our national reserves and energy resilience,” Bahlil said after the meeting at the Palace on Thursday (16/4/2026). In addition, his side is also continuously conducting intensive communications regarding LPG supplies for Indonesia from Russia. Considering that Indonesia imports around 7 million tonnes of LPG every year.