Indonesia to Build New Oil Storage Tanks; Who Are the Investors?

Jakarta, CNBC Indonesia — Energy and Mineral Resources Minister (ESDM) Bahlil Lahadalia said there are already investors interested in building crude oil storage tanks to bolster Indonesia’s energy resilience. The storage development follows the government’s move to bolster domestic energy reserve buffers (CPE).

Bahlil confirmed that the investors for the new storage project in Indonesia do not come from the United States; instead, it will be a collaboration between domestic and foreign investors. ‘Investments are already in place; the investors are ready. Not from the US. The investment can be blended between domestic and foreign partners,’ he said at the ESDM Ministry in Jakarta on Thursday (5 March 2026).

According to him, the private sector will build the new crude oil storage in Indonesia. ‘Yes, when it comes to building (new), it’s the private sector. (Building crude storage). If there is crude, the fuel’s tanks can operate,’ he added.

He explained that the storage development is urgent because the existing capacity is not enough to accommodate large imports at once.

‘In stages; it can’t all be done at once because our storage capacity isn’t sufficient. Our problem now is storage. That’s why we want to create storage now,’ he asserted.

Earlier, Bahlil said the government targets a phased approach. It is known that the Prabowo Subianto administration previously planned the construction of refineries and oil storage tanks across several regions, from Lhokseumawe in Aceh to Fakfak in West Papua.

This followed the submission of 18 pre-feasibility study documents related to the downstream project by the Downstream Task Force (Satgas Hilirisasi) chaired by ESDM Minister Bahlil Lahadalia to Rosan Roeslani, CEO of the Investment Management Agency (BPI) Daya Anagata Nusantara (Danantara).

According to the ministry’s briefing materials, the project is on the national downstream and energy-resilience priority list with investments totalling Rp 232 trillion. It comprises a refinery project worth Rp 160 trillion, employing 44,000 people, and an oil storage project worth Rp 72 trillion, employing 6,960 workers.

The refinery and oil storage projects will be spread across 18 regions, including Lhokseumawe, Sibolga, Natuna, Cilegon, Sukabumi, Semarang, Surabaya, Sampang, Pontianak, Badung (Bali), Bima, Ende, Makassar, Dongala, Bitung, Ambon, North Halmahera, Fakfak.