DEN studies use of idle tanks to strengthen energy reserves

The National Energy Council (DEN) is studying the utilisation of inactive or ‘idle’ tanks to strengthen the national Energy Buffer Reserve (CPE) as a relatively low-cost solution. “We are thinking, perhaps, idle tanks can be maximised,” said DEN member Satya Widya Yudha at IPB University in Bogor, West Java, on Wednesday. Increasing national energy reserve capacity by boosting crude oil storage capacity in Indonesia has become one of the medium-term strategies to achieve energy security. Satya is targeting an increase in national energy reserves from the previous 18–21 days to a minimum of 30 days. Therefore, DEN is conducting a study on utilising unused tanks to be converted into supporters of the national energy reserves. For Satya, using these tanks is a solution for strengthening national energy reserves at a relatively low cost compared to building new storage. “That is what we are considering because it is the option where the cost is not too high,” he said. Additionally, Satya is also considering the use of tanks owned by Cooperation Contract Contractors (KKKS) whose contract periods have expired and have become state property. “Upstream, those belonging to KKKS that may have already become state property. We are also thinking about that,” said Satya. Regarding the construction of new CPE infrastructure, Satya stated that DEN is currently 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 depend entirely on the State Revenue and Expenditure Budget (APBN). “We are reviewing the existing presidential regulation. We are considering whether private sector involvement is possible or not to build this storage. Because the existing presidential regulation states this purely relies on the APBN,” said Satya. Minister of Energy and Mineral Resources Bahlil Lahadalia plans to build oil storage in a Special Economic Zone in Sumatra to increase the national Energy Buffer Reserve. Bahlil stated that the plan to build oil storage in Sumatra is currently in the feasibility study stage. The construction of this oil storage, he continued, will eventually increase the national energy buffer reserve. Regarding ASEAN’s plan to build an oil storage hub for countries in the Southeast Asian region, Bahlil has offered Indonesia as the location for its construction. However, even if it is not agreed upon, Indonesia will still build its storage in Sumatra.