Building 3 New Tanks to Extend Indonesia's Fuel Stock

The government has inaugurated the construction of three fuel oil (BBM) tanks spread across three different regions. The project, synergised by BPI Danantara, is targeted to extend the national BBM storage capacity.

The three new BBM tanks have a total capacity of 153,000 kilolitres (kl). They are being built in Palaran (East Kalimantan), Biak (Papua), and Maumere (East Nusa Tenggara). Once operational, these tanks will add 3.1% to the national BBM storage capacity.

“Development of three BBM terminals in Palaran (37,000 KL), Biak (46,000 KL), and Maumere (70,000 KL) with a total additional capacity of 153,000 KL,” stated Danantara in a written release, quoted on Thursday (30/4/2026).

The project is managed by PT Pertamina Patra Niaga and is targeted to come online in stages in 2027 (Maumere) and 2028 (Palaran, Biak).

“This project strengthens the reliability of energy distribution, particularly in eastern Indonesia, thereby promoting equitable development and reducing inter-regional price disparities,” added Danantara.

In addition to BBM tanks, the programme encompasses the energy, metals and minerals, construction materials, and agroindustry sectors, aiming to reduce import dependency, strengthen the national industrial supply chain, increase added value from domestic resources, and foster broader job opportunities and economic activities for the community.

“Downstream industrialisation is a strategic instrument in driving the creation of added value domestically through the processing and industrialisation of natural resources,” added Danantara.

Besides increasing added value, downstream industrialisation is seen as playing a role in strengthening economic independence by reducing reliance on global supply chains, which can face dynamics and uncertainties in certain conditions, including geopolitical factors.

Through strengthening the domestic supply chain, downstream industrialisation also ensures more reliable national needs availability, while encouraging economic structural transformation towards a high added-value industrial base.