Not Just Oil, Government Redirects Industrial LPG for Public Use
Jakarta, CNBC Indonesia - The Directorate General of Oil and Gas (Ditjen Migas) of the Ministry of Energy and Mineral Resources is preparing several mitigation measures. This is particularly to maintain national energy supply resilience amid global supply dynamics.
Secretary of Ditjen Migas, Muhammad Rizwi, stated that one of the main steps taken by the government is regulating the consumption of fuel oil (BBM) and LPG to make it more targeted.
For LPG, the government is currently seeking additional supplies, both from imports and domestic production. Meanwhile, LPG that has previously been supplied to the industrial sector is now being redirected to meet public needs.
“We are hunting for LPG from imports as well as domestic LPG production; LPG that has been sold to industry is also being redirected for the needs of 3kg LPG, which is very much needed by the public,” he said during a Working Meeting with Commission XII of the House of Representatives, on Wednesday (8/4/2026).
The government is also diversifying energy import sources. Supplies that previously came largely from the Middle East are now being shifted to other countries such as the United States, Africa, Asia, and several ASEAN countries.
In addition, the government has instructed all Oil and Gas Contractors under Cooperation Contracts (KKKS) to prioritise fulfilling domestic needs. Domestic crude oil production is being fully utilised as feedstock for domestic refineries.
“We have instructed all KKKS to prioritise domestic supply over exports. This means that domestically produced crude is being fully utilised as feedstock for oil refineries in the country,” he added.
Furthermore, the government has requested a reduction in polypropylene production, which has high market value at the Balikpapan RDMP, and the redirection of naphtha feedstock to increase LPG production.
They have also asked private LPG refineries to prioritise selling their production to PT Pertamina Patra Niaga. Previously, some of that production was supplied to the industrial sector.