Insight

78% Import Dependence Leaves Indonesia’s LPG Market Exposed to Supply Shock

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Algo Research Team

Industry | Apr 03, 2026 | Views: 397

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Key Summary:

  • 24% of domestic demand is exposed to the Middle East conflict
  • Significant deficit in 2026 as industrial demand is expected to surge
  • Alternative supplies are urgently needed before inventory is depleted

Amid current energy disruptions, the Indonesian government is focusing on restrictive measures aimed at reducing fuel oil or gasoline demand, such as rationing distribution, adjusting mobility schedules, and implementing B50 programs.


However, a more immediate and concerning supply-chain risk lies in the Liquified Petroleum Gas (LPG) market, given the country’s heavy reliance on imports to meet domestic demand.

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