TL;DR
Indonesia's Directorate General of Oil and Gas has explained how LPG agent approvals are being processed through an integrated OSS and INLINE KESDM…
The Facts
Indonesia's Directorate General of Oil and Gas has explained how LPG agent approvals are being processed through an integrated OSS and INLINE KESDM workflow.
In a release dated 23 September 2026, the ministry said the integration began on 1 September. It linked the changes to PP 28/2025 and Minister of Energy and Mineral Resources Regulation 7/2026, explaining that the LPG distribution activity concerned is classified as medium-high risk and requires technical verification.
For KBLI 47302, the ministry highlighted the agreement between the distributor and the licensed oil-and-gas trading business as a key document. Contract accuracy matters before approval is issued. ESDM release.
What the application figures show
As of 21 September, the ministry reported 233 applications: 82 approved, 59 under evaluation and 92 rejected. It identified missing or incomplete contracts, expired contracts and inconsistent application data among the problems. These figures describe applications at that date; they do not establish that Bali experienced a supply shortage.
The same release describes the online approval service as free, with a five-working-day service standard. This is a service standard, not a promise that an incomplete application will be approved within five days.
Check the activity and documents together
PP 28/2025 provides the national risk-based business licensing framework. An applicant should establish that the chosen activity and application route match its actual business before treating the process as a document upload exercise. PP 28/2025.
Our recommendation for distributors is to compare the legal entity name, contract validity and activity details across the contract and application. Assign someone to monitor evaluation results and resolve document inconsistencies.
For hospitality businesses purchasing LPG, the relevant practical step is supplier verification. Purchasing fuel for a restaurant or villa is a different activity from applying to operate as an LPG distributor. Neither the licensing announcement nor this article determines a customer's eligibility for subsidised products.
Use the official application route and current ministry instructions when assessing a distribution business or submitting an approval request.
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