"We need to build the LPG industry by utilizing C3 (propane) and C4 (butane) gas, and we also need to push for household gas networks to supply people's needs," he said here on Friday.
According to the minister, the domestic consumption of LPG in Indonesia is around eight million tons per year. Meanwhile, the industry produces just 1.4 million tons of LPG per year. Thus, Indonesia has to import around 6 million to 7 million tons of LPG every year.
Therefore, President Prabowo Subianto has called for the acceleration of efforts to reduce LPG imports.
The step is important to maintain the economic balance and narrow the deficit in the country's trade balance and foreign exchange, Lahadalia explained.
Currently, Indonesia is spending significant foreign exchange on LPG imports, with around Rp450 trillion spent each year to purchase oil and gas, including LPG.
This figure has a direct impact on the country's trade balance and payments, so the development of the domestic industry is considered the right solution to ease this burden.
Lahadalia also highlighted the importance of developing a household gas network as part of the government's service to the community.
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Translator: Aji Cakti, Yashinta Difa
Editor: Rahmad Nasution
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