Indonesian Political, Business & Finance News

Not Rp20,000 per Canister, the Actual Price of 3 kg LPG Is This Much

| Source: CNBC Translated from Indonesian | Economy
Not Rp20,000 per Canister, the Actual Price of 3 kg LPG Is This Much
Image: CNBC

Jakarta, CNBC Indonesia - Deputy Speaker of the People’s Consultative Assembly (MPR) Eddy Soeparno has revealed that the government is still providing substantial subsidies for 3 kilogram (kg) Liquefied Petroleum Gas (LPG). This comes as the price of 3 kg LPG circulating in the community is currently around Rp20,000 per canister. According to Eddy, the economic price of 3 kg LPG actually reaches approximately Rp56,000 per canister, more than double the price paid by the public. “Ladies and gentlemen, the price of 3 kg LPG is around Rp20,000 to Rp21,000. Its economic price is Rp56,000,” he said at a CNBC Indonesia Coffee Morning event, quoted on Monday (27/7/2026). The large subsidy is considered a challenge because its distribution is deemed not yet on target. Based on data from the National Energy Council (DEN) cited by Eddy, the majority of energy subsidies are not enjoyed by the groups that truly need them, necessitating steps to improve recipient data. “According to the National Energy Council, 63% of our energy subsidies are mistargeted,” Eddy stated. Thus, there is a difference of about Rp35,000 to Rp36,000 per canister borne by the government as a subsidy to keep the price of 3 kg LPG affordable for entitled communities. Previously, Indonesian President Prabowo Subianto disclosed the extensive distribution of energy subsidies provided by the government to the public. At least tens of millions of households in Indonesia enjoy various forms of subsidies, from LPG and fuel to electricity. He detailed that 66.4 million households receive LPG subsidies. This number, according to him, is far greater than neighbouring countries. “LPG subsidies, 66 million households receive LPG subsidies, 66 million 400 thousand households, twice that of Malaysia. Twelve times that of Singapore, the Indonesian government is doing quite well,” Prabowo revealed during a Plenary Cabinet Session at the State Palace on Monday (20/7/2026). According to him, this success is the result of the hard work of all administrations from the era of Indonesia’s first President Soekarno to the present day.

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