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Home Energy & Power

ANG LPG savings: Indonesia targets Rp26trn cut

Arif Prasetyo by Arif Prasetyo
August 13, 2026
in Asia, Capital Markets, Economy, Finance, Indonesia, Investment, Trade
Reading Time: 2 mins read
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Indonesia’s National Research and Innovation Agency (BRIN) said its ANG technology could potentially reduce LPG subsidies by up to around Rp26 trillion per year.
Domestic gas substitution

Indonesia’s National Research and Innovation Agency (BRIN) Head Arif Satria presented the ANG proposal to President Prabowo Subianto during an event with 150 BRIN researchers at the State Palace complex in Jakarta on Thursday, August 6. BRIN said ANG, or adsorbed natural gas, uses metal-organic framework materials to enable compressed natural gas (CNG) to store significantly more gas than conventional systems at a pressure of 30 bar.

BRIN said the technology could extend the use of a standard 3-kilogram LPG-size cylinder from about 10 days to around 15 days, based on preliminary testing. BRIN said it is continuing research to try to double that duration.

The proposal matters because it links research work to a clear fiscal target. BRIN said preliminary calculations indicate the system could reduce the LPG subsidy burden by up to around Rp26 trillion a year and lower foreign exchange spending on LPG imports.

That message fits Prabowo’s current focus on energy security. According to ANTARA, President Prabowo Subianto urged BRIN to accelerate implementation after reviewing the agency’s research showcase at the State Palace complex in Jakarta.

Trial and rollout timeline

BRIN said the technology is in trials and it aims to complete testing in 2026 and begin deployment in 2027 as an alternative to imported LPG.

The timing is important for investors in Indonesia’s energy chain. If BRIN can prove the concept, ANG could support domestic gas monetisation and reduce the need for subsidy-heavy LPG imports.

BRIN’s case rests on physical storage gains, not fuel switching rhetoric. The agency said the system allows CNG to hold more gas than conventional systems at lower pressure, using the metal-organic framework as the core material.

For markets, the key issue is execution. Investors should watch whether BRIN can complete the 2026 trials, secure policy support, and convert the ANG LPG savings claim into a working domestic supply model in 2027.

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Tags: 2027 deploymentadsorbed natural gasANGArif SatriaASEANBRINCNGcompressed natural gascooking fueldomestic gasemerging marketsenergy securityenergy self-sufficiencyenergy transitionfiscal policyforeign exchangegas storagehousehold energyImport SubstitutionIndonesiaJakartaLPG importsLPG subsidymetal-organic frameworkPrabowo Subiantoresearch and innovationRp26 trillionSoutheast Asiastate researchsubsidy reform
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Arif Prasetyo

Arif Prasetyo

Arif Prasetyo is an economist and columnist from Jakarta with expertise in Indonesia’s energy transition, financial markets, and infrastructure projects. He has advised private and public stakeholders on renewable energy investments, commodities, and regional trade. His writing combines a macroeconomic lens with practical investment insights.

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