Business · Energy & Commodities · 2 hrs ago
Indonesia Plans Sumatra Oil Storage to Build 60-Day Reserves
Indonesia plans to build crude oil storage facilities in Sumatra to strengthen its energy security.
The facilities would hold imported oil, with the government aiming to build reserves for 60 days of domestic demand.
A feasibility study is complete, and officials plan to assess possible sites by the end of 2026, including their earthquake risks and local security conditions.
The 60-day goal would still be below the 90-day international benchmark that Indonesia says it hopes to approach.
The government is also preparing a plan to develop ethanol-blended fuels from E20 up to E50, working with the Agriculture Ministry on supplies of agricultural feedstock.
Indonesia will continue its B50 biodiesel policy, which requires diesel to contain 50 percent palm oil-based biodiesel.
Indonesia plans to build crude oil storage facilities in several parts of Sumatra, with a target of holding enough oil to cover 60 days of domestic demand.
The facilities are intended to store imported crude and strengthen the country’s energy security.
The feasibility study is complete, and the government plans to assess possible sites by the end of 2026.
Site selection will consider earthquake risks, safety and local security conditions.
The government is also planning a bioethanol strategy covering E20 to E50 and will continue its B50 biodiesel policy.
- Who
- The Indonesian government, with Bahlil Lahadalia describing the plans.
- What
- It plans crude oil storage facilities in Sumatra, targeting reserves for 60 days of domestic demand.
- When
- The plans were discussed after a cabinet meeting on November 3, 2026. Site assessments are due to start by the end of the year.
- Where
- Several locations in Sumatra, Indonesia.
- Why
- To strengthen energy security and hold imported crude oil.
This story does not have two clearly opposing sides.
Bahlil discussed the storage plan after a limited cabinet meeting with President Prabowo Subianto in Jakarta.
The government plans to begin assessing potential storage sites.
- Target reserve
- 60 days of domestic demand
- Planned locations
- Several parts of Sumatra
- Feasibility study
- Complete
- Site assessment
- Planned to start by the end of 2026
- Storage benchmark
- 90 days
- Bioethanol plan
- E20 to E50
5 sources
Bahlil Mau Bangun Tempat Penyimpanan Minyak Hasil Impor di Sumatra
Rencana Bahlil Bikin Penyimpanan Minyak di Sumatera
Indonesia Plans Sumatra Oil Storage to Build 60-Day Reserves
What people are saying
We will build storage facilities in several locations in Sumatra so that when we import crude oil, we have somewhere to store it for more than 20 days. Our target is to reach 60 days
The feasibility study is complete. By the end of this year, we will start checking potential locations in terms of safety, both earthquake risks and local security conditions
We will try to bring our storage capacity in line with the world's minimum standard. That standard is three months, or 90 days. We will work toward that level, or at least get as close to it as possible
We will maintain B50 because we do not know where the geopolitical situation will lead