Jakarta, MINE — The Indonesian Energy, Mineral and Coal Suppliers Association (ASPEBINDO) expressed support for the government policy direction conveyed by the Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia, regarding efforts to reduce dependence on LPG imports and strengthen the use of domestic gas from Compressed Natural Gas (CNG) or Liquefied Natural Gas (LNG).
The General Chair of ASPEBINDO, Anggawira, assessed that this step was an important part of the grand strategy of national energy security and optimization of domestic resources.
“What Mr. Bahlil said is correct. We cannot continue to depend on LPG imports. Domestic gas, both CNG and LNG, must be a strategic solution going forward,” said Anggawira in his statement, Tuesday (28/4).
ASPEBINDO considers that the government’s push to develop the use of gas as a substitute for LPG is the right step in policy terms, but its success is largely determined by implementation in the field.
“Our challenge is not in gas availability, but in distribution, prices and downstream economics. This is what must be resolved so that the program runs effectively,” he stressed.
CNG-LNG Has Started Running: Just Scale Up
ASPEBINDO notes that gas utilization is no longer just a plan. Currently, small-scale retail LNG (mini LNG) initiatives have emerged, including distribution from Pasuruan to Bali for the hospitality sector (hotels, restaurants, cafes).
Anggawira said, this model utilizes a mini LNG plant, ISO tank transportation and regasification at the customer’s location. “This is proof that retail LNG is feasible. It’s just a matter of encouraging policies so that it can develop nationally,” added Anggawira.
ASPEBINDO also appreciates the government’s steps in building national gas infrastructure, such as the CISEM (Cirebon–Semarang) and DUSEM (Dumai–Sei Mangkei) pipelines.
“What the government is doing today is correct, pipes are the backbone. But to reach all regions of Indonesia, we still need CNG and LNG as last mile solutions,” he explained.
ASPEBINDO sees a big opportunity for the use of CNG and LNG in supporting government programs such as SPPG in the Free Nutritious Meal (MBG) program. The use of gas is considered more efficient, has a stable supply and is cleaner
Key Issues: Price and Economics
Currently, LPG is still subsidized so that market prices are more competitive compared to CNG and LNG.
“If there is no policy intervention, substitution will not occur naturally by the market. This is a reality that we have to face,” he said.
Therefore, ASPEBINDO believes there must be strategic recommendations. First, incentives are key, including special gas prices for downstream, fiscal incentives such as tax allowances and import duty exemptions, user conversion subsidies, as well as viability gap fund schemes.
Second, licensing reform through multilevel permits. ASPEBINDO encourages the implementation of multi-tier licensing so that more business actors can enter, with the division of Tier 1 as aggregator, Tier 2 as distributor, and Tier 3 as local operator. Third, supply flexibility, including LNG imports.
“We need to open up space for the private sector. If it is too rigid, the ecosystem will not grow,” added Anggawira.
In line with global dynamics and domestic needs, ASPEBINDO considers it important to have policy flexibility.
“When domestic demand increases, the country must be flexible in opening up LNG import options so that prices remain competitive and supply is maintained,” he stressed.
Gas as National Transition Energy
ASPEBINDO emphasized that gas, both CNG and LNG, has a strategic role as transitional energy because it is cleaner than fuel, more stable than intermittent renewable energy and more infrastructure ready.
“Gas is a bridge to clean energy. This must be utilized optimally in Indonesia’s energy transition period,” he added.
ASPEBINDO assesses that the policy direction conveyed by Minister of Energy and Mineral Resources Bahlil is on the right track, but needs to be strengthened with concrete steps on the downstream side.
“If this policy is accompanied by the right incentives, flexible licensing and an integrated ecosystem, then we will not only reduce LPG imports, but also build gas-based national energy sovereignty,” concluded Anggawira.
Source: tambang.co.id
