To Curb LPG Imports and Subsidies, Bahlil to Accelerate CNG Adoption

Energy and Mineral Resources Minister Bahlil Lahadalia has stated that the government is accelerating the use of Compressed Natural Gas (CNG) as a replacement for LPG to reduce imports. “The only way to reduce our foreign exchange outflows and cut subsidies for LPG is through an energy mix. That is why we are now pushing CNG. The gas used for CNG is C1 and C2, and it is abundant in Indonesia,” Bahlil said in Jakarta on Thursday, 25 June 2026. He also highlighted that the kerosene-to-LPG conversion programme, which began in 2006, was a noble idea but was not accompanied by the development of a domestic LPG industry, leading to import dependency. Bahlil noted that Indonesia’s average LPG consumption is more than 8.5 million metric tonnes per year, while national production is only around 1.91 million MT, meaning roughly 75 to 80 percent of supply must be imported. He stressed that accelerating CNG adoption is necessary to achieve energy independence and sovereignty. The government is currently in the third phase of trials for 3 kg CNG canisters for household use, in collaboration with Pertamina. CNG canisters of 12 kg and 50 kg have already been implemented in commercial sectors, including the Free Nutritious Meals programme kitchens, hotels, and restaurants.