Rich in Natural Gas Resources, Madura Deemed Suitable to Become CNG Ecosystem Hub
REPUBLIKA.CO.ID, JAKARTA — The government’s plan to convert national energy from Liquefied Petroleum Gas (LPG) to Compressed Natural Gas (CNG) has been positively welcomed. This policy is viewed not merely as an energy efficiency measure but also as having the potential to address development imbalances between energy consumption centres and gas-producing regions.
The administration is preparing the second phase of energy conversion as part of a strategy to strengthen national energy resilience while reducing reliance on LPG imports. Amid this discourse, gas-producing areas such as Madura Island are considered to have strategic opportunities to integrate into the new gas-based energy ecosystem chain.
Founder and Owner of Bandar Gas Madura (Bagasmara), HRM Khalilur R Abdullah Sahlawiy or Gus Lilur, has welcomed the plan positively. According to him, the conversion from LPG to CNG is not only relevant to national interests but also opens up opportunities for economic justice in regions that have long served as energy production sources.
“For Indonesia, this is a strategic agenda. But for Madura, this grand plan holds much deeper meaning. It is not just about energy. It is about justice. It is about the long history of an island rich in resources, yet its people still struggle with poverty,” said Gus Lilur to reporters in Jakarta on Wednesday (13/5/2026).
He assessed that for decades, Madura has been known as a region with significant natural gas potential, but the direct economic benefits to local communities have not been optimal. The national energy conversion is seen as a turning point to position Madura not merely as a resource exploitation area, but as a centre for new gas-based economic growth.
According to Gus Lilur, the shift in energy orientation towards CNG has the potential to bring a new economic chain from upstream to downstream sectors, including the development of gas distribution infrastructure, derivative energy industries, and the creation of local job opportunities.
“If this policy is implemented seriously, Madura is highly suitable to become the national CNG ecosystem centre. Energy infrastructure can grow, investments can flow in, and local communities can become the main actors, not just spectators,” he stated.
He added that the conversion from LPG to CNG also has the potential to strengthen national energy independence because Indonesia has relatively abundant gas reserves compared to its dependence on LPG imports. Utilising domestic gas is seen as able to reduce the burden of energy subsidies while improving distribution efficiency.
In addition to economic aspects, Gus Lilur highlighted the social dimension of the national energy policy. According to him, energy sector development should be able to bring equitable welfare to resource-producing regions, thus preventing disparities between production and energy consumption areas.
He assessed that the government has a strong political and economic momentum to carry out this transformation, especially amid global pressures towards cleaner and more efficient energy.
“Energy conversion is not just a fuel change. It is an opportunity to build a new economic civilisation in the regions. Madura has a long history as an energy contributor, and it is time for it to become a growth centre,” he said.
Gus Lilur hopes that the central government can involve local businesses, regional governments, and communities in developing the national gas ecosystem so that the energy conversion policy is not merely technocratic but also directly impacts community welfare.
According to him, the success of the LPG to CNG conversion will be greatly determined by infrastructure readiness, investment regulations, and policy favouritism towards energy-producing regions. Without such an approach, the opportunity for economic equity is feared not to be achieved optimally.
With its gas reserve potential and geographical position, Madura is assessed to have the initial capital to become a new hub for national gas energy development. The government’s energy conversion plan is also viewed as a strategic momentum to accelerate the birth of a new gas ecosystem centre in Indonesia.