Indonesia to boost oil storage amid Middle East conflict
“The investment and the investors are already here,” he said when met in Jakarta on Wednesday (March 4).
He noted that the parties involved in developing these facilities consist of both foreign and domestic entities, clarifying that the foreign investors are not from the United States.
“The investment is a mix of domestic and foreign, but not the US. The private sector is building the storage,” Lahadalia continued.
This indicates that private companies will play a significant role in developing Indonesia’s crude oil infrastructure.
The minister outlined that these facilities aim to bolster Indonesia’s energy security. Through this development, the government intends to increase the country’s maximum oil storage capacity from 25–26 days to 90 days, or three months.
“President Prabowo Subianto instructed us to build storage immediately. We need survival. Otherwise, we will continue to be dependent,” he pointed out.
Currently, Indonesia’s energy security has become a major public concern amid the escalating war between the United States, Israel, and Iran.
On Saturday (February 28), the US and Israel launched a series of attacks on several targets in Iran, including Tehran. The strikes reportedly caused significant damage and civilian casualties.
Iran retaliated by launching missile attacks on Israeli territory and US military facilities in the Middle East.
On Sunday (March 1), US President Donald Trump claimed that Iran’s supreme leader, Ayatollah Ali Khamenei, was killed in a joint US-Israeli attack. Iranian state television later confirmed Khamenei’s death.
Furthermore, Iranian media reported that the Strait of Hormuz has been “effectively” closed following the attacks, although no formal blockade has been officially announced.
The Strait of Hormuz handles approximately one-fifth of the global oil trade, as well as large volumes of liquefied natural gas exports from Qatar and the United Arab Emirates. About 20 percent of global daily oil consumption, roughly 20 million barrels, passes through this critical corridor.
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Translator: Putu Indah S, Resinta Sulistiyandari