Indonesia Develops Strategy to Reduce LPG Imports, DME and CNG as Alternatives

RRI.CO.ID, Jakarta – The Indonesian government is preparing alternative energy sources such as Dimethyl Ether (DME) and Compressed Natural Gas (CNG). This plan aims to reduce dependence on Liquefied Petroleum Gas (LPG) imports, which pose a risk to energy security.

Minister of Energy and Mineral Resources, Bahlil Lahadalia, also stated that this step is being taken as a solution to address the uncertain global geopolitical situation. After meeting with President Prabowo Subianto, he said it in a press statement at the Presidential Palace in Jakarta on Monday, April 27, 2026.

The Minister revealed that Indonesia uses 8.6 million tons of LPG every year. Currently, Indonesia must import about 7 million tons of that total.

“I also reported on how we are exploring alternative steps related to substituting our LPG imports. We know that our annual LPG consumption is 8.6 million tons, and of that 8.6 million, only about 1.6 to 1.7 million tons are domestically produced. The rest, about 7 million tons, is imported,” he said.

Bahlil explained that the limited availability of LPG sources, namely C3 and C4, in Indonesia is the main obstacle, meaning that domestic production has not yet been able to meet demand. Some options being considered include DME derived from coal, as well as CNG derived from liquefied gas.

The minister stated, “Then we look for alternatives. We convert to produce DME from low-calorie coal. That is one alternative. Now, the third alternative, which is currently still under discussion as I reported earlier, is producing CNG. But this is still under discussion, I need to finalize it.”

Bahlil stated that CNG is an alternative solution because the raw materials are available domestically. CNG has already been utilized on a limited basis in hotels and restaurants.

Meanwhile, the DME downstream project from coal is also being prepared and has now entered the groundbreaking phase. “As for DME, the groundbreaking has just taken place. But as for CNG, some of it is already in use,” Bahlil said.