Liquefied Petroleum Gas (LPG) is a commonly used fuel in Indonesia, including for the industrial sector and small and medium enterprises (SMEs). However, LPG usage has some limitations, such as its relatively high price and limited availability. Currently, many industries and SMEs in Central Java and the Special Region of Yogyakarta (DIY) use the 3 kg subsidized LPG category. The 3 kg subsidized LPG is a gas fuel subsidized by the government. It is intended for households and micro-enterprises that use LPG for cooking. The subsidized 3 kg LPG is sold at a lower price compared to the non-subsidized version. The government provides the 3 kg LPG subsidy to help the poor and vulnerable to access affordable energy. This subsidy is also aimed at reducing the burden of household expenses for cooking needs.
Compressed Natural Gas (CNG) is an alternative fuel that can overcome the limitations of LPG. CNG is a more efficient, safer, and environmentally friendly fuel compared to LPG. This study report aims to examine the potential for converting LPG to CNG for the industrial sector and SMEs in Central Java and DIY. The report is based on research conducted by the Purnomo Yusgiantoro Center (PYC) research team. This research found that there is significant potential for converting LPG to CNG for the industrial sector and SMEs in Central Java and DIY. This is due to the fact that these regions have many industries and SMEs that use LPG as a fuel. In addition, the Central Java and DIY regions are close to natural gas resources in the Cepu Block (Gundih Field, North Kedungtuban Field, and Alas Dara Kemuning (ADK)).
This report recommends several steps to support the conversion from LPG to CNG for the industrial sector and SMEs in Central Java and DIY, both from the government and the private sector.
ISBN: [in process]
