Indonesia still relies on imports to cope with a shortage of liquefied petroleum gas (LPG), which is expected to worsen in the coming years because of surging demand.
Indonesia’s consumption of LPG rose to 6.67 million metric tons last year, up 1.5 percent from 2015, according to the data from the Energy and Mineral Resources Ministry. The domestic production of LPG, however, dropped to 2.24 million metric tons in 2016 from 2.27 million the previous year. This has led to an increase in LPG imports to 4.42 million metric tons in 2016 from 4.3 million in 2015.
This LPG shortage was rooted in a massive energy program launched by the government in 2007 to switch from kerosene to LPG as cooking fuels. Meanwhile, the Central Statistics Agency (BPS) recorded that 24.8 million households still rely on firewood for cooking.
Analysis of the LPG program found that the progr...