DEN Explores Idle Tank Usage to Achieve 30-Day Minimum Energy Reserve Target, Shuns New Builds

The National Energy Council (DEN) is studying the utilisation of idle tanks to strengthen the national Energy Buffer Stock (CPE) as a solution with relatively low costs, aiming to increase the national energy reserve from the current 18-21 days to a minimum of 30 days. DEN Member Satya Widya Yudha revealed that increasing the national energy reserve capacity by boosting crude oil storage capacity in Indonesia has become one of the medium-term strategies for achieving energy security. “We are considering, perhaps, maximising the idle tanks,” he said during an event at IPB University in Bogor, West Java. For Satya, utilising these tanks is a solution for strengthening the national energy reserve with costs that are not too high compared to building new storage facilities. “That’s what we are thinking about because the cost would not be too large,” he stated. Satya is also considering the utilisation of tanks owned by Production Sharing Contract Contractors (KKKS) whose contracts have expired and have become state property. “Those upstream, belonging to KKKS that may have become state property. We are also thinking about that,” said Satya. Regarding the construction of new CPE infrastructure, Satya mentioned that his team is reviewing the regulations governing CPE. DEN is seeking to involve the private sector in strengthening the CPE, so that the procurement of tanks does not rely entirely on the State Budget (APBN). “We are currently reviewing the existing presidential regulation. We are considering whether private sector involvement is possible for building this storage. Because under the current presidential regulation, this purely relies on the power of the APBN,” Satya said. Previously, the Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia announced plans to build oil storage facilities in the Special Economic Zone (KEK) in Sumatra to increase the national Energy Buffer Stock. Bahlil stated that the plan to build oil storage in Sumatra is currently in the feasibility study stage.