Anticipating Energy Crisis, Indonesian KKKS Encouraged to Bring Crude Oil Back Home

Indonesian Contract Work Cooperation (KKKS) contractors, such as Pertamina and Medco, are being encouraged to bring their overseas oil production back to the country. This measure is necessary to anticipate the threat of a global energy crisis that continues to loom over the current international geopolitical situation.

Executive Director of the Reforminer Institute, Komaidi Notonegoro, stated that by bringing crude oil produced abroad back to Indonesia, it can be processed in domestic refineries at the published rate to meet fuel needs.

“I agree and support Indonesian oil and gas companies bringing oil from abroad (and processing it in domestic refineries at the published rate). Because, from a business perspective, there is a slight difference, but the important thing is to fulfil domestic needs first,” said Komaidi in Jakarta on Monday (6/4).

According to Komaidi, this effort is highly positive. Amid the current energy crisis threat, the most important aspect is the availability of fuel domestically. He cited examples of other countries where citizens are suffering due to fuel shortages.

“Rather than like the Philippines, which is now starting to run out of energy. People there are already walking to work. Fuel prices have risen by 70%,” he said.

PERTAMINA’S EFFORTS

The effort to bring crude oil from abroad was previously undertaken by Pertamina at the end of January. At that time, the state-owned enterprise brought back 1 million barrels of crude oil from Algeria. This crude oil was not an import but from the Working Area (WK) Block 405 A in Algeria, managed by Pertamina International Exploration & Production (PIEP) under the Pertamina Upstream Subholding.

Therefore, amid the global energy crisis that has the potential to spread to Indonesia, it is hoped that Pertamina will again bring back their overseas products. The same applies to other Indonesian oil and gas companies, such as Medco.

Additionally, it is hoped that crude oil from private KKKS companies operating in Indonesia can be sold to Pertamina’s refineries. Komaidi added that in the current global energy crisis, national interests must be prioritised. Moreover, with global oil prices continuously soaring, the rupiah exchange rate against the US dollar weakening, and crude oil supplies being very limited.

Therefore, all efforts must be made. Not only seeking new supply sources but also bringing back crude oil from the production of Indonesian oil and gas companies abroad.

DOMESTIC NEEDS

Separately, the General Chairman of the National Oil and Gas Companies Association (Aspermigas), Elan Biantoro, agreed. He supports Indonesian oil and gas companies bringing their overseas products back to maintain domestic fuel supplies. “Yes, that must be done, bringing back oil from overseas expansion so that there is no deficit domestically,” said Elan.

In uncertain geopolitical conditions like this, Elan clearly stated that various parties must undertake various efforts to ensure domestic needs are met.

“Conditions like now require us to think creatively. If not, domestic needs won’t be fulfilled. For the public, we might encourage conservation, but industrial needs, for economic development, goods and services in industrial areas require fuel,” said Elan.

Therefore, Elan also hopes that Pertamina will again bring back their oil products from Algeria, as done in January 2026.

According to Elan, this effort is quite significant amid the current energy crisis threat. “Significant, this is an important additional supply. Especially in the unstable global geopolitical conditions,” he said.

Elan also stated that Indonesian oil and gas companies should now set aside efforts to maximise profits. Because the most important thing is to obtain goods to meet domestic needs, thereby driving the economy.

“Now, forget about prices first. The important thing is the supply. Have the goods first, then talk about prices. So that the economy can keep turning,” Elan concluded.

With reserves of around 20 days, it does not mean that fuel will run out after that, as the government, through Pertamina, will continue to stabilise stocks.