Subsidized LPG Consumption Seen Exceeding 2026 Quota
Jakarta. Indonesia’s consumption of subsidized 3-kilogram LPG is projected to exceed this year’s state budget quota, reaching 8.6 million tons in 2026 as demand continues to rise, according to the Energy and Mineral Resources Ministry.
Oil and Gas Director General Laode Sulaeman told lawmakers on Wednesday that consumption could climb even higher to 8.677 million tons by year-end, or 108.46% of the 8 million-ton quota set in the 2026 state budget.
“The projection for 2026 is indeed 8.6 million tons,” Laode said during a hearing with House Commission XII.
As of July, 5.05 million tons of 3-kg LPG had been distributed. Demand is expected to continue rising next year, with the government setting a higher quota of 8.9 million tons in the 2027 state budget proposal.
“We have also conveyed that the projection for 2027 could exceed this year’s level,” Laode said.
The government has been seeking to curb the growth in subsidized LPG consumption, partly by tightening a distribution system that has allowed the fuel to be purchased broadly by the public.
“We have taken various measures to reduce the burden from the rising consumption of LPG,” Laode said.
The government began overhauling the 3-kg LPG distribution system on March 1, 2023, starting with the registration of users through a web-based system and requiring purchases to be linked to registered users.
The next stage involves matching user data and determining which groups are eligible to receive the subsidized LPG.
Laode said the data-matching process is expected to help slow consumption growth and ensure the subsidy reaches its intended beneficiaries.
State energy company Pertamina has also signed an agreement with the Population and Civil Registration Directorate General, or locally called Dukcapil, to strengthen user data before the government moves to regulate which segments of society can access 3-kg LPG.
“Pertamina and Dukcapil have signed an MoU, and we will further strengthen the data before setting regulations for the different groups of people who use 3-kg LPG,” Laode said.
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