Indonesia: Market for Liquefied Petroleum Gas (LPG) 2022

Market Size for Liquefied Petroleum Gas (LPG) in Indonesia

In 2021, after two years of decline, there was significant growth in the Indonesian liquefied petroleum gas (LPG) market, when its value increased by 41% to $X. Overall, the total consumption indicated mild growth from 2012 to 2021: its value increased at an average annual rate of +1.0% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. As a result, consumption attained the peak level and is likely to continue growth in the immediate term.

Production of Liquefied Petroleum Gas (LPG) in Indonesia

In value terms, liquefied petroleum gas (LPG) production skyrocketed to $X in 2021 estimated in export price. In general, production, however, recorded a abrupt shrinkage. The pace of growth was the most pronounced in 2014 when the production volume increased by 24% against the previous year. As a result, production reached the peak level of $X. From 2015 to 2021, production growth failed to regain momentum.

Exports of Liquefied Petroleum Gas (LPG)

Exports from Indonesia

Liquefied petroleum gas (LPG) exports from Indonesia declined remarkably to X tons in 2021, dropping by -52.6% against the previous year. Overall, exports showed a perceptible descent. The most prominent rate of growth was recorded in 2014 with an increase of 79% against the previous year. Over the period under review, the exports hit record highs at X tons in 2019; however, from 2020 to 2021, the exports remained at a lower figure.

In value terms, liquefied petroleum gas (LPG) exports dropped dramatically to $X in 2021. In general, exports saw a abrupt curtailment. The most prominent rate of growth was recorded in 2014 when exports increased by 36% against the previous year. The exports peaked at $X in 2019; however, from 2020 to 2021, the exports remained at a lower figure.

Exports by Country

China (X tons) was the main destination for liquefied petroleum gas (LPG) exports from Indonesia, with a 84% share of total exports. Moreover, liquefied petroleum gas (LPG) exports to China exceeded the volume sent to the second major destination, Malaysia (X tons), sixfold. The third position in this ranking was held by Thailand (X tons), with a 0.8% share.

From 2012 to 2021, the average annual growth rate of volume to China totaled +35.7%. Exports to the other major destinations recorded the following average annual rates of exports growth: Malaysia (-8.4% per year) and Thailand (-3.6% per year).

In value terms, China ($X) emerged as the key foreign market for liquefied petroleum gas (LPG) exports from Indonesia, comprising 83% of total exports. The second position in the ranking was taken by Malaysia ($X), with a 13% share of total exports. It was followed by Thailand, with a 1.9% share.

From 2012 to 2021, the average annual growth rate of value to China totaled +17.7%. Exports to the other major destinations recorded the following average annual rates of exports growth: Malaysia (-15.7% per year) and Thailand (-4.9% per year).

Export Prices by Country

The average liquefied petroleum gas (LPG) export price stood at $X per ton in 2021, dropping by -21.1% against the previous year. Overall, the export price recorded a abrupt slump. The most prominent rate of growth was recorded in 2017 when the average export price increased by 23%. The export price peaked at $X per ton in 2012; however, from 2013 to 2021, the export prices remained at a lower figure.

Prices varied noticeably country of destination: the country with the highest price was Thailand ($X per ton), while the average price for exports to China ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to Singapore (+3.2%), while the prices for the other major destinations experienced a decline.

Imports of Liquefied Petroleum Gas (LPG)

Imports into Indonesia

Liquefied petroleum gas (LPG) imports into Indonesia expanded to X tons in 2021, surging by 1.6% on 2020. Overall, total imports indicated buoyant growth from 2012 to 2021: its volume increased at an average annual rate of +8.2% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, imports increased by +102.9% against 2012 indices. The pace of growth appeared the most rapid in 2017 when imports increased by 26%. Imports peaked in 2021 and are expected to retain growth in years to come.

In value terms, liquefied petroleum gas (LPG) imports soared to $X in 2021. In general, total imports indicated a perceptible expansion from 2012 to 2021: its value increased at an average annual rate of +3.3% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, imports increased by +61.0% against 2019 indices. The pace of growth was the most pronounced in 2017 when imports increased by 61%. Over the period under review, imports hit record highs in 2021 and are likely to see gradual growth in the near future.

Imports by Country

In 2021, the United States (X tons) constituted the largest supplier of liquefied petroleum gas (LPG) to Indonesia, with a 59% share of total imports. Moreover, liquefied petroleum gas (LPG) imports from the United States exceeded the figures recorded by the second-largest supplier, the United Arab Emirates (X tons), threefold. The third position in this ranking was taken by Saudi Arabia (X tons), with a 6.3% share.

From 2012 to 2021, the average annual growth rate of volume from the United States totaled +242.8%. The remaining supplying countries recorded the following average annual rates of imports growth: the United Arab Emirates (+7.6% per year) and Saudi Arabia (-3.4% per year).

In value terms, the United States ($X) constituted the largest supplier of liquefied petroleum gas (LPG) to Indonesia, comprising 59% of total imports. The second position in the ranking was taken by the United Arab Emirates ($X), with a 19% share of total imports. It was followed by Saudi Arabia, with a 6.5% share.

From 2012 to 2021, the average annual rate of growth in terms of value from the United States amounted to +220.1%. The remaining supplying countries recorded the following average annual rates of imports growth: the United Arab Emirates (+2.8% per year) and Saudi Arabia (-7.7% per year).

Import Prices by Country

In 2021, the average liquefied petroleum gas (LPG) import price amounted to $X per ton, growing by 54% against the previous year. Overall, the import price, however, recorded a pronounced shrinkage. The import price peaked at $X per ton in 2012; however, from 2013 to 2021, import prices failed to regain momentum.

Average prices varied somewhat amongst the major supplying countries. In 2021, the highest price was recorded for prices from Australia ($X per ton) and Saudi Arabia ($X per ton), while the price for Kuwait ($X per ton) and Qatar ($X per ton) were amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Australia (-1.7%), while the prices for the other major suppliers experienced a decline.

Source: IndexBox Market Intelligence Platform

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