Indonesia's LPG Replacement to Emerge This Year, These Regions to Receive It First

Jakarta, CNBC Indonesia - The Ministry of Energy and Mineral Resources (ESDM) is targeting the distribution of compressed natural gas or Compressed Natural Gas (CNG) as an alternative replacement for Liquefied Petroleum Gas (LPG) to begin being consumed by the public this year. The main focus as the initial target market for distribution is major cities, particularly on the island of Java. The Director General of Oil and Gas (Dirjen Migas) of the Ministry of ESDM, Laode Sulaeman, explained that the government is currently refining the distribution model and the readiness of field infrastructure. “It is targeted that this year it can be consumed by the public,” he stated during an energy discussion event held by ASPEBINDO in Jakarta, quoted on Tuesday (12/5/2026). According to him, the plan for implementing the use of compressed natural gas will not immediately target all regions of Indonesia simultaneously. In the initial phase, distribution will be prioritised for major cities on Java to test the effectiveness of the distribution simulation before expanding to other areas. “Gradually in major cities first in Java. The roadmap is that we have one, of course, because this has not been announced by the Minister, but the main point is that in the future we will reduce our LPG, we will replace it with CNG,” Laode explained. The use of CNG is projected to provide savings in subsidy costs of up to 30% because the gas source comes entirely from domestic oil and gas fields. In addition to foreign exchange efficiency, the government ensures that safety aspects are the top priority by preparing Type 4 cylinder technology made of composite fibre material, which is claimed to be lighter and stronger. “Research for us to use CNG has been going on for quite a long time and there are two important components in the cylinder and valve parts that require technology, which finally today has been found and can be implemented,” he said.