TEMPO.CO, Jakarta - Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, is pushing for the downstreaming of liquefied petroleum gas (LPG). This industrialization process is crucial to reducing Indonesia's reliance on LPG imports.

“[That’ll be possible] if we mandate the downstreaming of LPG,” Bahlil said during a press conference at his office on Monday, November 4, 2024. 

Bahlil outlined the government's plan to establish factories for domestic LPG production, a responsibility that will primarily fall to state-owned gas and oil firm PT Pertamina. He emphasized the urgency of this initiative, stating, “I will discuss with Pertamina to determine their role and the involvement of the private sector in accelerating this industrialization process.”

Indonesia, according to him, possesses abundant domestic resources, including approximately 1.8 million barrels of propane (C3) and butane (C4), which are essential components for LPG production. 

He highlighted the government's commitment to utilizing these domestic resources to minimize imports, asserting that by maximizing the domestic raw materials, Indonesia could significantly reduce its reliance on foreign sources.

The ESDM Ministry continues to explore opportunities for converting LPG into dimethyl ether (DME), a target previously set for 2035. Bahlil remains enthusiastic about increasing DME production and potentially incorporating it into the downstreaming process, although he clarified that DME downstreaming is not mandatory.

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