JAKARTA – The Indonesian government is preparing alternatives to reduce the use of 3-kilogram (kg) LPG cylinders in 2027. One of the options being developed is 3-kg Compressed Natural Gas (CNG), which is currently undergoing trials at the Oil and Gas Technology Research and Development Center (Lemigas).
Secretary General of the Ministry of Energy and Mineral Resources (ESDM) Ahmad Erani Yustika said CNG is one of the alternatives that will be developed starting next year. The move follows an agreement between the government and the House of Representatives (DPR) to reduce the allocation of 3-kg LPG in the 2027 state budget.
The agreed allocation of 3-kg LPG for 2027 is 8 million metric tons (MT), down from the government’s initial proposal of 8.945 million MT. According to ESDM, the reduction is partly aimed at cutting Indonesia’s dependence on imported LPG.
“Next year, CNG and other alternatives will already start to be introduced,” Erani said at the ESDM Ministry in Jakarta on Friday (September 25, 2026).
Besides CNG, the government is also preparing other alternatives to reduce consumption of subsidized 3-kg LPG. These include electric stoves, the expansion of household gas networks, and the development of gas transmission pipelines.
The development of CNG is not a new initiative. The government has previously stated that it wants to increase the use of domestically produced natural gas as an alternative to LPG. ESDM believes the move could help reduce LPG imports while making greater use of Indonesia’s domestic natural gas supply.
Director General of Oil and Gas at ESDM Laode Sulaeman said the 3-kg CNG trial is currently being conducted at Lemigas to assess its technical feasibility and safety. Once the testing phase is completed, the government will determine the next steps before expanding CNG use.
Meanwhile, the government will continue to provide 3-kg LPG as part of the subsidized energy scheme. The reduction in the allocation does not mean that 3-kg LPG will be immediately discontinued. The government will continue to monitor actual demand and assess whether consumption exceeds the assumptions used in the 2027 budget.
Under the 2027 state budget, the subsidy for 3-kg LPG is set at around Rp103.05 trillion. The figure is part of the total fuel and LPG subsidy allocation of Rp131.39 trillion.
