For Indonesia's Supply, All Oil Owned by Oil and Gas Contractors Will Not Be Exported!

Jakarta, CNBC Indonesia - The Head of the Special Task Force for the Implementation of Upstream Oil and Gas Business Activities (SKK Migas), Djoko Siswanto, has confirmed that all Oil and Gas Contractors under Production Sharing Contracts (KKKS) have agreed to sell their oil production to domestic refineries.

“In line with the government’s instructions through the Directorate General of Oil and Gas, the entire portion of crude oil production belonging to KKKS has been confirmed to be sold, processed, and refined domestically,” explained Djoko Siswanto during a Hearing with Commission VII of the House of Representatives on Wednesday (8/4/2026).

Meanwhile, the Directorate General of Oil and Gas (Ditjen Migas) under the Ministry of Energy and Mineral Resources (ESDM) outlined that one of the government’s steps to mitigate energy supply provision amid global geopolitical turmoil is to redirect exports of oil owned by oil and gas KKKS to the domestic market.

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

Second, diverting 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 the crude oil produced domestically is endeavoured to be fully utilised as feedstock for domestic oil refineries,” emphasised Muhammad Rizwi.

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

Fifth, sourcing LPG through 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 public,” he said.

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

“We have also instructed private LPG refineries to prioritise offers to Pertamina Patra Niaga. Previously, their production was 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.