Indonesia Diversifies Energy Sources, Boosts Refinery Capacity to Secure Fuel Stocks

Jakarta (ANTARA) - The Indonesian government has undertaken diversification of energy sources to ensure the supply of fuel oil (BBM) remains secure amid global geopolitical dynamics, particularly tensions in the Middle East region.

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia, in an online press conference monitored from Jakarta on Tuesday, emphasised that this step is taken to reduce dependence on a single region while safeguarding national energy resilience.

“From our total (BBM) needs from the Middle East, it’s about around 20 percent,” he said.

According to Bahlil, the government has anticipated potential supply disruptions by seeking alternative sources from other countries.

“When tensions occur in the Middle East, the government, on the direction of the President, seeks other supply sources to replace those from the Middle East. And Alhamdulillah, we have already obtained them,” he stated.

In addition to diversifying imports, the government is also strengthening domestic production through refinery development, one of the projects that has been inaugurated is the Refinery Development Master Plan (RDMP) located in Balikpapan, with a production capacity of 5.6 million kilolitres of petrol and around 4.5 million kilolitres of diesel.

He explained that in the future, Indonesia’s energy imports will still be dominated by crude oil, while BBM needs such as RON 90, 95, 98, and 92 are partially met from domestic production and the rest from Southeast Asia.

For LPG commodities, the government is also beginning to shift supply sources to countries outside the Middle East, including from the United States, as part of the diversification strategy.

“So in terms of supply, Insya Allah, please pray, it’s clear, no problems,” said Bahlil.