Indonesian Political, Business & Finance News

MP Urges Utilisation of CNG to Reduce Dependence on LPG Imports

| Source: VIVA Translated from Indonesian | Energy
MP Urges Utilisation of CNG to Reduce Dependence on LPG Imports
Image: VIVA

Jakarta – A member of Commission XII of the Indonesian House of Representatives, Yulisman from the Golkar Party faction, is urging the government to accelerate the utilisation of Compressed Natural Gas (CNG) as a strategic option to reduce Indonesia’s high dependence on LPG imports while strengthening national energy resilience. Yulisman assesses that with around 80 per cent of national LPG needs still fulfilled by imports, breakthrough steps are required that not only focus on long-term measures such as building gas networks (jargas), but also quick and flexible solutions like CNG. “CNG can serve as a realistic transitional solution. We have substantial domestic gas resources; the key is to distribute them effectively to the public and business sectors,” Yulisman stated in his remarks on Wednesday, 29 April 2026. He explained that compared to LPG, which largely comes from imports, CNG is based on domestic natural gas, making it more economically efficient and capable of alleviating pressure on the state budget, particularly from energy subsidies. According to him, CNG development is highly relevant for implementation in areas with abundant gas potential but not yet fully reached by gas pipeline networks. Regions such as Riau, Jambi, and South Sumatra are considered to have significant opportunities to serve as pilot implementations for this scheme. “Gas-producing regions like Riau, Jambi, and South Sumatra are highly potential. There, we can start from industrial scale, MSMEs, to housing through the CNG scheme or what is known as virtual pipeline,” he clarified. Yulisman added that the success of several countries such as India, Pakistan, and Argentina in developing CNG demonstrates that optimal utilisation of domestic gas can curb dependence on imported energy while improving national energy efficiency. Furthermore, he emphasised that CNG development must be positioned as part of the broader national energy resilience strategy, alongside accelerating jargas construction in urban areas and developing downstream energy programmes such as coal gasification, as concrete steps towards national energy independence.

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