Energy Minister Bahlil Ensures Subsidies for CNG

TEMPO.CO, Jakarta - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia confirmed that the government will continue to provide subsidies for the implementation of compressed natural gas (CNG). This follows the government’s plan to replace 3-kilogram liquefied petroleum gas (LPG) with CNG.

"I ensure that the subsidy remains necessary for the people," Bahlil stated, as quoted by Antara on Wednesday, May 6, 2026.

Bahlil noted that the provision of these subsidies aligns with the directives of President Prabowo Subianto, who has instructed that the interests of the public be prioritized. Despite the continued use of subsidies, Bahlil estimated that transitioning from 3-kg LPG to CNG could reduce subsidy expenditures by up to 30 percent.

Regarding the CNG distribution plan, Bahlil explained that it differs only slightly from the current LPG framework. "This is just a replacement; one is LPG, and the other is CNG. With CNG, there is no foreign exchange spent. With LPG, there is an outflow of foreign exchange because we lack the C3 and C4 raw materials," Bahlil said.

Currently, the government is not only testing the production of type 4 cylinders for 3-kg CNG but is also studying the prospective selling price. "Pray that the price falls below that of 3-kg LPG. Or at least the same. At least the same," said Bahlil.

Furthermore, he explained that CNG is not a new technology, as it has already been utilized in the hospitality sector, restaurants, and the Free Nutritious Meal (MBG) program. However, its application has historically been limited to large-capacity cylinders ranging from 10 to 20 kilograms.

Preparations are now underway for small-scale CNG cylinders similar to the 3-kg LPG format. This transition is necessary because CNG possesses different physical characteristics than LPG, maintaining a pressure of approximately 250 bar, which is higher than the 5-10 bar pressure of LPG.

The disparity in gas pressure necessitates adjustments to the design of the 3-kg gas cylinders, which directly impacts safety considerations. The trial for these small-sized CNG cylinders is expected to take approximately two to three months.

CNG Rollout Plan

Bahlil added that if the trial results are deemed successful, the government will open the door for a gradual conversion from LPG to CNG for household needs.

Director-General of Oil and Gas at the Ministry of ESDM, Laode Sulaeman, projected that CNG could begin replacing 3-kg LPG as early as this year to reduce dependency on energy imports. In the future, CNG for households will be rolled out in major cities across Java before being implemented throughout Indonesia. "It will be gradual in major cities in Java. This year," Laode said.

Read: Indonesia Pushes 3kg CNG as LPG Alternative, 40% Cheaper

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