Indonesia proposes ASEAN oil storage hub, eyes Sumatra site

“We will build storage anywhere, but I proposed Indonesia,” Lahadalia said in Jakarta on Monday, adding no agreement has been reached on the ASEAN hub’s location.

He said Indonesia would work with Malaysia, Brunei and the Philippines to advance the proposal.

The hub would help build regional reserves to supply Southeast Asian countries during disruptions.

Separately, Indonesia plans an oil storage facility in a Sumatra special economic zone to raise its energy buffer reserve (CPE).

The project is in a feasibility study stage and is expected to increase national reserves, he said.

Lahadalia said the Sumatra project would proceed even if Indonesia is not chosen to host the ASEAN hub.

“The idea of creating an ASEAN oil storage hub is a good one,” he said.

Lahadalia earlier accompanied President Prabowo Subianto to the ASEAN Summit in Cebu, Philippines, on May 7–8, 2026.

Leaders discussed regional priorities, including strengthening energy cooperation and security.

The minister attended meetings on shared energy challenges across ASEAN.

Talks also covered cross-border power interconnection and energy diversification.

Officials aim to bolster regional energy security and resilience through diversification to address ongoing energy challenges.

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Translator: Putu Indah S, Resinta Sulistiyandari