Bahlil: Fuel stock is secure, but storage capacity limited

Energy and Mineral Resources Minister Bahlil Lahadalia said Indonesia’s national fuel stock is currently at 23 days, slightly above the national minimum threshold. He acknowledged that the main issue is not the volume but storage capacity. ‘Our fuel storage capacity has long maxed at 25 days, maximum. So our national stock is between 20 and 23 days. Now it’s 23 days — already above the standard minimum stock level,’ he said at the Presidential Palace complex in Jakarta after a limited meeting with President Prabowo Subianto on Wednesday, 4 March. He rejected the notion that the government could easily raise stock to 60 days. ‘We cannot say, friends, that we should stock 60 days. Where to store it? We do not have storage. That is why the President’s directive is to immediately build storage.’ Therefore, the government is now preparing the construction of new storage facilities to strengthen energy resilience to a target of three months’ stock. One location under consideration is in Sumatra. ‘We plan one of the best alternatives in the Sumatra region,’ Bahlil said. Amid a global conflict that could disrupt energy routes, Bahlil assured domestic supply remains safe in the near term. ‘As of now it hasn’t been disrupted. But going forward if the war lasts longer it will have an impact. Up to the next 1-2 months, God willing, we are still clear. God willing there will be no problems,’ he said. He also highlighted diversification of import sources as a mitigation step. For LPG, he said there is no disruption. For petrol, imports are not dependent on the Middle East; ‘If it concerns LPG there is no issue; it is relatively clear. If it concerns BBM that we import, we buy it in Southeast Asia, not in the Middle East; so relatively clear,’ he concluded. The article also notes that the National Assembly expressed support for the minister’s mitigation measures against potential oil supply disruptions, and that the government is considering importing bioethanol from the United States to cover domestic shortfalls. Bahlil also said the government plans to increase storage capacity from around 25–26 days to 90 days (three months). He also assured that subsidised Pertalite prices will not rise.