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Indonesia working on ways to reduce LPG imports
The Energy and Mineral Resources Ministry aims to implement measures to reduce Indonesia’s dependence on imported liquefied petroleum gas (LPG).
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Workers stack empty 3-kg-LPG cylinders at Langgea village in South Konawe, Southeast Sulawesi, on June 15, 2020. (Antara/Jojon)
The government is planning measures to reduce Indonesia’s dependence on imported liquefied petroleum gas (LPG).
Energy and Mineral Resources Minister Arifin Tasrif explained on Friday that the government would continue to develop Indonesia’s gas infrastructure, produce coal-derived dimethyl ether (DME) and push for the use of electric stoves to reduce the nation’s reliance on imported LPG and alleviate the strain LPG subsidies are putting on the state budget.
“[Indonesia] cannot keep depending on [LPG] imports,” Arifin told reporters in Jakarta on Friday, saying that the three programs were expected to complement one another in reducing LPG imports.
At an estimated Rp 134.8 trillion (US$8.99 billion), the subsidy for 3-kilogram-LPG cylinders accounts for 26.8 percent of the nation’s total energy subsidy bill this year.
The country imported 3.9 million tons of LPG for $3.12 billion in the January-July period, Statistics Indonesia data show.
The government has been busy extending natural gas distribution networks with a target to reach 4 million households by 2024.
Read also: Explainer: How Indonesian government ‘subsidizes’ unsubsidized fuel
