Bahlil Confirms Indonesia to Begin Construction of New Oil Tanks in May 2026
Jakarta, CNBC Indonesia - The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has confirmed that the construction of the Energy Buffer Reserve (CPE) in the form of new oil storage tank facilities will proceed in May 2026. This development aims to strengthen national energy resilience amid high uncertainties in supply due to global geopolitical conflicts.
When asked about the latest progress on the facility construction plans after the Eid holiday, Bahlil emphasised that the feasibility study (FS) stage is still ongoing as scheduled. He is optimistic that the project execution target for next month can be realised.
“Alhamdulillah, just after Eid. As I said, it will be done in May, the FS is still underway,” Bahlil stated at his office, quoted on Tuesday (7/4/2026).
The CPE construction is necessary because the current storage capacity can only maintain energy stocks at the national minimum standard level. At present, Bahlil does not deny that Indonesia must compete with other countries to secure energy supplies from the international market.
“We take from wherever, as long as it’s available. Even then, we still have to compete with other countries. Imagine now, even when tenders are held, the goods are already there, but if someone else buys at a higher price, the trader or selling company could potentially sell to the higher bidder,” Bahlil explained.
“Our current stock is still at the national minimum level. So, insyaallah, it’s clear,” Bahlil replied when asked about the national energy supply condition.
Previously, Bahlil explained the reason behind Indonesia’s fuel oil (BBM) stock lasting only 20 days. That statement had sparked public concern following the closure of the Strait of Hormuz in Iran.
Concerns arose due to the closure of the main global oil trade route. Pertamina even revealed that 19% of Indonesia’s oil imports come from the Middle East via the Strait of Hormuz.
However, according to Bahlil, the 20-day stock is indeed the maximum capacity for BBM domestically. “Don’t get the wrong perception; for a long time, our storage capacity in Indonesia has not exceeded 21-25 days. The national minimum standard is 20-21 days, maximum 25 days,” he said at the Presidential Palace complex on Wednesday (4/3/2026).
Bahlil also explained that, based on Pertamina’s report, Indonesia’s current BBM stock has reached 22-23 days.
“Why don’t we stock more than 25 days? Where would we store it if we did? The storage isn’t sufficient. So please clarify: it’s not that we can’t prepare more than 25 days, but because the capacity isn’t there,” Bahlil stated.
Furthermore, Bahlil explained that President Prabowo Subianto has also ordered the construction of BBM storage refineries so that Indonesia’s energy resilience can last longer. The target is for the expected storage capacity to reach three months of BBM stock.