Subsidized LPG quota set to run out, energy council warns

The National Energy Council (DEN) has warned the government to intensify monitoring of subsidized 3-kg liquefied petroleum gas (LPG) distribution, as consumption is expected to surpass the 2026 quota. DEN member Saleh Abdurrahman stated that stricter oversight is crucial to ensure the subsidy reaches only eligible households. He warned that the increasing price gap between subsidized and nonsubsidized LPG is prompting consumers to switch to the cheaper 3-kg canisters.

Saleh emphasized the need for regional administrations to play a more significant role in monitoring distribution at the local level to keep the subsidy on track. He also suggested that Indonesia should transition to direct cash transfers for energy subsidies or adopt a fully closed scheme using national identity numbers, as seen in current data-driven initiatives.