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Indonesia to keep subsidies in LPG-to-CNG transition

Jakarta (ANTARA) – Indonesia will maintain subsidies for compressed natural gas planned to replace subsidized 3-kilogram LPG cylinders, Energy Minister Bahlil Lahadalia said on Wednesday.”I can guarantee gas subsidies will remain for the people,” he said, adding the policy aligns with President Prabowo Subianto's directive to prioritize public interests.Bahlil estimated the shift from LPG to CNG could reduce subsidy spending by up to 30 percent.He said CNG would help reduce foreign exchange spending because Indonesia still imports LPG feedstock.The government is also preparing 3-kilogram CNG cylinders and studying pricing schemes.”We hope the price will be lower than or at least equal to 3-kilogram LPG,” he said.Bahlil said CNG has long been used in sectors such as hotels, restaurants, and the Free Nutritious Meals program.However, existing CNG cylinders are larger, prompting the government to develop smaller units for households.He noted that cylinder designs must be adjusted due to CNG’s significantly higher pressure compared to LPG.Safety tests for the smaller cylinders are expected to take up to three months before gradual implementation.The government plans to begin introducing household CNG in major cities on Java this year to reduce energy imports.