CNG as an LPG Alternative, the Minister of Energy and Mineral Resources Gives Explanation

Jakarta - Energy and Mineral Resources Minister Bahlil Lahadalia said that the government would prepare compressed natural gas or CNG as an alternative to LPG.

This was conveyed by Bahlil at the Presidential Palace Complex, Jakarta, Tuesday, May 5. This step, according to Bahlil, was discussed with President Prabowo Subianto because 75-80 percent of Indonesia's LPG needs are still met from imports. This is certainly affected by geopolitical turmoil.

CNG is natural gas that is compressed at high pressure. It is different from LPG which is commonly used by households in gas cylinders. According to Bahlil, CNG has been used by hotels, restaurants, and MBG for large sizes. However, the use of 3 kg cylinders is still being tested because the pressure is high, around 200-250 bar.

Bahlil said that CNG is cheaper because the raw materials are available in the country. He said the price could be around 30 percent lower than LPG. Bahlil estimated that the use of CNG could save foreign exchange of around Rp. 130 trillion to Rp. 137 trillion if the technology is ready and widely implemented.

Regarding subsidies, Bahlil said all options were still being studied. The government has not determined the final scheme for small-sized CNG. Bahlil also confirmed that there was no increase in electricity tariffs. He ensured that subsidized fuels, including gasoline, diesel, and LPG, would not rise.