The Ministry of Energy and Mineral Resources (ESDM) calls on state-owned enterprises (BUMN) and the private sector to establish liquefied petroleum gas (LPG) production facilities as part of the efforts to reduce dependency on imports.
ESDM Minister Bahlil Lahadalia said Indonesia holds significant LPG raw material potential, with around 1.8 million tons of propane (C3) and butane (C4) reserves spread across oil and gas working areas.
“Some of these raw materials are within (State energy company) Pertamina’s working areas,” Bahlil said on Monday, November 4, 2024.
He cited that he would discuss utilizing this potential with Pertamina to accelerate domestic LPG production and reduce import dependency.
“Parts of these areas will be managed by Pertamina, while the rest will be open for private sector involvement,” he said.
Building LPG production facilities is a mandate Bahlil received from then President Joko Widodo and President Prabowo Subianto.
Indonesia’s LPG imports currently stand at 6.95 million metric tons, a 3.14 percent increase from 2022’s 6.73 million metric tons.
The Upstream Oil and Gas Regulatory Task Force (SKK Migas) has identified 15 potential oil and gas fields for LPG production, with seven set as prioritized fields.
These fields are located across Indonesia, with the largest reserves found in East Kalimantan and Senoro in Central Sulawesi, according to SKK Migas Chief Dwi Soetjipto.
