Bahlil's Directive: All Oil and Gas Companies to Redirect Oil Exports to Domestic Market

The Directorate General of Oil and Gas (Ditjen Migas) of the Ministry of Energy and Mineral Resources (ESDM) has outlined that one of the government’s steps to mitigate energy supply provision amid global geopolitical turmoil is to redirect oil exports from Oil and Gas Cooperation Contract Contractors (KKKS) to the domestic market.

This was revealed in a presentation by Ditjen Migas of the Ministry of ESDM during a Hearing Meeting (RDP) with Commission VII of the House of Representatives (DPR RI) on Wednesday (8/4/2026).

Secretary of Ditjen Migas, Muhammad Rizwi, explained that the mitigation steps for energy supply include: First, regulating the consumption of fuel oil (BBM) and LPG in a reasonable and prudent manner. “The regulatory letter related to this arrangement has been issued by Ditjen Migas and BPH Migas,” clarified Muhammad Rizwi on Wednesday (8/4/2026).

Second, redirecting import sources that were previously from Middle Eastern countries affected by issues in the Strait of Hormuz to other countries such as the United States, Africa, Asia, and ASEAN nations.

“Third, for oil or crude oil, we have instructed all KKKS to prioritise domestic supply over exports.”

“This means that domestically produced crude is endeavoured to be fully utilised as feedstock for domestic oil refineries,” emphasised Muhammad Rizwi.

Fourth, optimising domestic refineries, for example, the Balikpapan RDMP which produces polypropylene. The price of this product is actually higher, but its production is being reduced, and its naphtha feedstock is being shifted to enrich LPG production to strengthen national LPG supply.

Fifth, hunting for LPG from imports as well as domestic LPG production. “LPG that has been sold to industry is also being endeavoured to be redirected to meet the needs of 3 kg LPG, which is greatly needed by the community,” he explained.

To support this, the Ministry of ESDM is seeking other LPG sources from Asian and ASEAN countries.

“We have also instructed private LPG refineries to prioritise offers to Pertamina Patra Niaga. What was previously sold to industry, but we are giving priority to private LPG refineries to offer their production first to Pertamina Patra Niaga, whose LPG is used for public needs,” he stressed.

At the same time, the Head of SKK Migas, Djoko Siswanto, also stated that all oil production from KKKS has been confirmed to be sold to domestic refineries.