Energy Minister Bahlil Lahadalia Exposes LPG 3 Kg Price Manipulation by the 'Mafia'

Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has revealed the existence of a cartel-like mafia behind the recent surge in Liquefied Petroleum Gas (LPG) 3 Kg prices.

According to Bahlil, certain unscrupulous parties are preventing the public from accessing LPG 3 Kg at affordable prices.

"I am currently restructuring the system to eliminate these fraudulent practices. But every time we try to fix it, some mafia figures interfere because they want the prices to stay high," Bahlil stated during his visit to Darut Tauhid Islamic Boarding School, Purworejo, Central Java, on Monday (March 10, 2025).

Due to these manipulations, the price of LPG 3 Kg in some regions has exceeded the government-mandated Retail Price Ceiling (HET).

Bahlil emphasized that the government is working on improving the sales and distribution system to ensure subsidies reach the intended beneficiaries without being misused.

"The government provides a subsidy of Rp36,000 per cylinder. This subsidy must be distributed fairly and reach those who truly need it," he stressed.

President Prabowo Subianto has issued clear instructions for ensuring all government subsidies are accurately allocated to promote social justice for all Indonesians.

"President Prabowo has tasked us ministers with ensuring that subsidies effectively benefit the people," Bahlil explained.

Support from Islamic Boarding Schools and Strengthened LPG 3 Kg Oversight

During his visit, Minister Bahlil sought support from various stakeholders, including Darut Tauhid Islamic Boarding School, to help implement LPG subsidy reforms without public opposition.

"Do you agree that we need to restructure the distribution system?" Bahlil asked.
"Yes, we agree!" the students and religious leaders responded in unison.

Additionally, Bahlil reiterated that the government will tighten distribution oversight and enforce strict regulations to ensure fair availability of LPG 3 Kg across Indonesia.

He also stressed the importance of public education on efficient and responsible use of subsidized LPG, ensuring that government support benefits all societal groups fairly and effectively.