{
    "success": true,
    "data": {
        "id": 1663438,
        "msgid": "oil-from-east-javas-largest-field-100-processed-domestically-1775631189",
        "date": "2026-04-08 13:20:00",
        "title": "Oil from East Java's Largest Field 100% Processed Domestically",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Energy",
        "summary": "The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) has ensured that all crude oil production from ExxonMobil's operations in the Cepu Block, East Java's largest field, is now fully supplied for domestic needs to bolster national energy resilience amid global conflicts. This policy shift has increased domestic refinery absorption to 98.2% of national lifting, with ongoing negotiations to curb exports from other producers like MedcoEnergi using contract clauses. By prioritising local processing through Pertamina, Indonesia benefits from more economical pricing compared to volatile international markets, enhancing energy security.",
        "content": "<p>Jakarta, CNBC Indonesia - The Special Task Force for Upstream Oil and\nGas Business Activities (SKK Migas) has confirmed that the entire crude\noil production from the US-based company ExxonMobil in Indonesia,\nspecifically the Cepu Block in Bojonegoro, East Java, is fully supplied\nfor domestic needs. This is aimed at strengthening national energy\nresilience amid global war tensions. SKK Migas Head Djoko Siswanto\nstated that they are encouraging the oil and gas working contract\ncontractor (KKKS) not to export its oil production any longer. He\nexplained that this has increased the absorption of crude oil by\ndomestic refineries compared to previous years. \u201cAlhamdulillah,\nExxonMobil\u2019s KKKS portion is now 100% processed domestically,\u201d Djoko\nsaid when met at the Ministry of Energy and Mineral Resources office in\nJakarta, quoted on Wednesday (8\/4\/2026). The increased supply of crude\noil to domestic refineries is the government\u2019s response to the heating\ngeopolitical situation. Thanks to this policy, nearly all national crude\noil production or lifting now flows to refineries within the country.\n\u201cIt\u2019s improving, improving. 98.2% if I\u2019m not mistaken,\u201d he added.\nBesides ExxonMobil, SKK Migas is also working to hold back exports from\nother producers like MedcoEnergi. Although there is no official export\nban this year, the government opts for negotiation using special clauses\nto delay shipments abroad if the oil supply is urgently needed\ndomestically. \u201cMedco is just waiting for the letter from the minister.\nI\u2019ve actually sent a letter stating that in Medco\u2019s export contract with\nthe foreign buyer, if the government needs it, the shipment can be\npostponed to the following year,\u201d he explained. Regarding the selling\nprice of crude oil to the domestic market, Djoko mentioned that\nPertamina, as the buyer, will conduct direct negotiations to keep it\neconomical. Purchasing oil domestically is considered far more\nbeneficial for Pertamina than sourcing from the global market where\nprices are soaring. \u201cNegotiation. Medco wants no gain no loss, meaning\nif the contract price is, say, ICP plus 1-2 dollars, Pertamina also pays\n1-2 dollars. Compared to buying on the market, which is now more\nexpensive. What\u2019s the market price now, 100? If the contract is ICP plus\nonly 2 dollars, which is more profitable?\u201d he emphasised.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/oil-from-east-javas-largest-field-100-processed-domestically-1775631189",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}