Antara News·Indonesia·Monday, October 26, 2026 at 11:24 PM UTC

Indonesia to build crude oil storage for direct imports

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Kelik Dewanto, Yashinta Difa

Jakarta (ANTARA) - The Indonesian government plans to build domestic crude oil storage facilities to allow imports to be shipped directly to the country without stopping in third countries.

Energy and Mineral Resources Minister Bahlil Lahadalia said the initiative aims to strengthen national energy security amid escalating geopolitical tensions in the Middle East.

Under the plan, a Public Service Agency (BLU), in collaboration with several private-sector partners, will oversee the construction of the storage facilities.

“We are going to build crude oil storage facilities here. A Public Service Agency, in partnership with several companies, will handle the construction,” Bahlil said in a statement on Monday (October 26).

“This way, when we import crude oil, it will no longer have to stop in various other countries. It will come directly to Indonesia,” he added.

The planned infrastructure forms part of a broader overhaul of the country's energy procurement system under a new presidential regulation.

The regulation shifts the procurement of crude oil, fuel and liquefied petroleum gas (LPG) to a Public Service Agency through government-to-government (G2G) and government-to-business (G2B) arrangements.

The changes follow instructions from President Prabowo Subianto, who has directed his administration to prepare contingency measures, including worst-case scenarios, to safeguard Indonesia's energy supplies amid global uncertainty.

Indonesia continues to import crude oil, although the government says its crude supplies no longer come from the Middle East.

To strengthen long-term supply security, Bahlil also plans to visit several countries, including India and China, to seek greater certainty over supplies and secure long-term procurement contracts.

Addressing public concerns, the minister urged Indonesians to remain calm, saying the government was taking proactive measures to manage potential disruptions in global energy markets.

“People of Indonesia, please remain calm. God willing, I can provide assurance—under the direction and instruction of President Prabowo—that our fuel reserves meet the national minimum standard and that the prices of subsidized fuels will not increase. I have been tasked with securing long-term contracts,” Bahlil said.

Describing the initiative as a strategy for navigating an unpredictable global environment, Bahlil emphasized the importance of combining domestic storage infrastructure, diversified procurement arrangements and long-term supply agreements. Together, these measures are intended to strengthen Indonesia's energy security and reduce the risk of external supply disruptions affecting households and domestic economic activity.

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