TEMPO.CO, Jakarta - The government is currently in discussions to reduce Indonesia’s dependence on imported liquefied petroleum gas (LPG), as domestic production remains far below national demand.
Annual LPG consumption in Indonesia reaches around 8.6 million tons, while domestic output is only about 1.6–1.7 million tons. The resulting gap of roughly 7 million tons is still covered through imports.
Energy and Mineral Resources Minister Bahlil Lahadalia said the government is exploring alternative energy sources to cut import reliance, including the development of coal-based Dimethyl Ether (DME) and the use of Compressed Natural Gas (CNG).
According to Bahlil, CNG is considered a strategic option as it utilises domestically produced gas components such as C1 and C2. He said this approach would strengthen domestic gas utilisation while reducing reliance on imported LPG. CNG, he added, could also be used more efficiently across sectors such as hotels, restaurants, and existing gas refuelling stations.
“We are currently in discussions, and what I have reported earlier is about our efforts to produce CNG. But this is still under discussion, I need to finalise it, and this is one of the best alternatives to promote energy self-sufficiency in the LPG sector,” Bahlil said, as quoted by Antara on Tuesday, April 28, 2026.
Bahlil also said Indonesia’s fuel supply remains stable, including gasoline and diesel, which are still above minimum national standards.
“So, thank God, for almost two months during the geopolitical situation in the Middle East and the Strait of Hormuz, we remain stable,” he said.
He added that crude oil supply for domestic refinery development is also secure, keeping overall national energy conditions relatively stable.
The government is also preparing several strategic measures to anticipate a potential global energy crisis, including boosting oil lifting, expanding the B50 biodiesel program to reduce diesel imports, and developing E20 bioethanol fuel.
“These are three things we must do in facing the current global energy crisis,” Bahlil said.
To support the implementation of B50, the Energy and Mineral Resources Ministry is currently conducting road tests across various sectors, including locomotive trials, as part of preparations for the planned mandatory biodiesel policy.
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