JAKARTA - The government is preparing compressed natural gas or CNG as an alternative to LPG. Minister of Energy and Mineral Resources Bahlil Lahadalia said this step was discussed because 75-80 percent of Indonesia's LPG needs are still met from imports.
"The question now is that when political turmoil like this, to get certainty that LPG imports are indeed there, but we depend on the global. So we formulate other alternatives," said Bahlil at the Presidential Palace Complex, Jakarta, Tuesday, May 5.
CNG is natural gas that is compressed at high pressure. Unlike 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.
"For the 3 kg, the tube is still being tested. Insyaallah in two to three months we will get the results," he said.
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.
"The gas is in us and the industry is in the country. So it's not imported," said Bahlil.
He estimated that the use of CNG could save foreign exchange of around Rp130 trillion to Rp137 trillion if the technology is ready and widely implemented. Foreign exchange is the country's foreign exchange reserves, which are used to pay for imports, among others.
Regarding subsidies, Bahlil said all options were still being studied. The government has not set a final scheme for small-sized CNG.
"Everything is being studied again. The subsidy option still has to be. It's just what the volume is like," he said.
Bahlil also emphasized that there had been no increase in electricity tariffs. He ensured that subsidized fuels, including gasoline, diesel, and LPG, would not increase.
"I say there will be no increase," said Bahlil.
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