Indonesian Political, Business & Finance News

LPG Demand Continues to Rise, Supply Pressure Increases

| | Source: REPUBLIKA Translated from Indonesian | Energy
LPG Demand Continues to Rise, Supply Pressure Increases
Image: REPUBLIKA

The Ministry of Energy and Mineral Resources (ESDM) records that Indonesia’s dependence on LPG imports continues to increase in early 2026. Up to February, LPG imports have fulfilled 83.97% of total national needs, up from 80.58% in 2025.

This rise indicates that domestic LPG production is still unable to catch up with the continuous growth in national demand.

“In 2026 up to February, the import dependency for LPG has increased to 83.97% of total needs,” said the Secretary of the Directorate General of Oil and Gas of the Ministry of ESDM, Muhammad Rizwi Jilanisaf Hisjam, during a hearing with Commission VII of the DPR RI at the Parliamentary Complex, Senayan, Jakarta, on Wednesday (8/4/2026).

Rizwi explained that national LPG needs in 2025 were recorded at 25,000 metric tons per day. Entering 2026 up to February, the needs rose to 26,000 metric tons per day.

On the other hand, supply from domestic production has not yet shown the ability to meet those needs. As a result, imports remain the main backbone in maintaining the national LPG supply.

He continued that supply pressure does not only come from rising consumption but also from the national energy structure that still relies on foreign supplies. This condition places LPG as one of the energy commodities most vulnerable to global supply chain disruptions.

“From the graph we presented, it is evident that domestic production is still far below needs, so LPG imports continue to dominate the national supply,” said Rizwi.

View JSON | Print