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Indonesia Explores CNG as Alternative to Imported LPG

Bambang Ismoyo
May 6, 2026 | 3:20 pm
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Energy and Mineral Resources Minister Bahlil Lahadalia visits a liquefied petroleum gas (LPG) distributor in Cibodas District, Tangerang, Tuesday, Feb. 4, 2025. (B-Universe Photo/Wahroni)
Energy and Mineral Resources Minister Bahlil Lahadalia visits a liquefied petroleum gas (LPG) distributor in Cibodas District, Tangerang, Tuesday, Feb. 4, 2025. (B-Universe Photo/Wahroni)

Jakarta. Indonesia is exploring the use of compressed natural gas (CNG) as an alternative to liquefied petroleum gas (LPG) for household cooking, part of a broader effort to reduce reliance on imported energy and ease pressure on state subsidies.

Energy and Mineral Resources Minister Bahlil Lahadalia said Wednesday that the government is currently testing 3-kilogram CNG cylinders, including evaluations of tank safety and design.

“This CNG program for 3-kilogram cylinders is still undergoing testing and evaluation, particularly regarding the cylinders themselves. We hope CNG can become one of the alternatives to reduce our large LPG imports,” Bahlil said at his office in Jakarta.

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Indonesia imports around 8.6 million tons of LPG annually, according to the minister, creating a substantial burden on state finances through energy subsidies and import costs.

Given the scale of those expenses, the government is seeking ways to better utilize domestic energy resources by converting locally available gas supplies into alternatives capable of replacing LPG consumption.

However, Bahlil acknowledged that implementing small-scale CNG cylinders for household use will take time.

CNG has already been used commercially in Indonesia, particularly in larger cylinders ranging from 12 kilograms to 20 kilograms. The main challenge now, he said, is developing technology suitable for household consumers, as larger tanks are considered impractical for everyday domestic use.

As a result, the development of smaller 3-kilogram cylinders has become a priority.

“This is actually something we have been working on for the past year,” Bahlil said.

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