Gov’t to Improve Household Gas Pipeline Networks to Limit LPG Subsidy

Coordinating Minister for Economic Affairs Airlangga Hartarto delivers a press statement (Photo: PR of Cabinet Secretariat/Rahmat)

In a bid to reduce the use of liquefied petroleum gas (LPG), especially the 3 kg LPG, the Indonesian Government has announced it will improve household gas pipeline networks.

According to Indonesian Coordinating Minister for Economic Affairs, the use of 3 kg LPG tends to grow, leading to an increase in subsidy of up to Rp117 trillion this year.

“In 2022, the use of subsidized LPG reached 7.8 million ton and the use of non-subsidized LPG keeps going down by about 580,000. This year, it is estimated that the subsidy can reach Rp 117 trillion,” Airlangga said.

To date, the Minister added, household gas pipeline networks have covered 835,000 houses and of the 835 networks, 594,000 houses are funded by the Government and 241,000 houses are funded by state-owned gas company PT. PGN.

“The Government continues to pay attention to the increase in the gas pipeline networks in 2024 of up to 2.5 million networks,” he said, adding that the Government is analyzing the policy on the regulation that allows the private sector to get involved through the government-to-business cooperation (KPBU) scheme. (TGH/UN)(AW/EP)