JAKARTA - PT Pertamina (Persero) predicts an increase in demand for liquefied petroleum gas (LPG) or LPG, both subsidized and non-subsidized this year. To meet domestic demand, Pertamina will import 7.2 million metric tons of LPG.
Pertamina's Managing Director Nicke Widyawati explained that the LPG import was in accordance with LPG needs in 2021, namely 7.5 million metric tons. Compared to last year, Pertamina experienced an increase in imports of 1 million metric tons.
"We will calculate how much production from refineries or domestic LPG has increased. So that the plan is that in 2021, LPG imports are 7.2 million metric tons," he said, in a joint hearing (RDP) with Commission VII DPR RI, Tuesday, 9 February.
In 2021, said Nicke, Pertamina is pushing for a reduced portion of subsidized LPG. So that non-subsidized LPG becomes more so that it is no longer a burden to the government.
"We encourage the PSO (subsidies) to get smaller and not become a burden, and we increase non-PSO (non-subsidized), that is our target in 2021. So our target is 162 million barrels of non-PSO and PSO of 47 thousand barrels, "he said.
Nicke explained that so far Pertamina still imports LPG a lot because domestic production is still around 995 thousand metric tons from domestic refineries and 1 million metric tons from Pertamina refineries. However, domestic production is better than last year.
Furthermore, Nicke hopes that increasing domestic production can make Indonesia reduce its dependence on imports of LPG.
"So that we can slightly reduce what should be imported," he said.
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