Indonesia to Build Oil Storage in Sumatera SEZ
Jakarta (ANTARA) - The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, plans to build oil storage in the Special Economic Zone (SEZ) in Sumatera to increase the national Energy Buffer Reserve (CPE).
“We plan to build it in Sumatera. We will create a Special Economic Zone,” Bahlil said when met at the Ministry of ESDM office in Jakarta on Monday.
Bahlil stated that the plan to build oil storage in Sumatera is currently in the feasibility study (FS) stage. The construction of the oil storage, he continued, will add to the national energy buffer reserves.
Regarding ASEAN’s plan to build an oil storage hub for countries in Southeast Asia, Bahlil offered Indonesia as the location for its construction.
However, even if not agreed upon, Indonesia will still build its storage in Sumatera.
“Even without that idea (ASEAN oil storage hub construction), Indonesia is already building oil storage. That idea (ASEAN storage hub) emerged when Indonesia was already ready to implement it,” Bahlil said.
To date, there is no agreement on where the ASEAN regional oil storage hub will be built. Bahlil mentioned that to realise the proposal, Indonesia will collaborate with Malaysia, Brunei, and the Philippines.
Through the construction of the storage hub, Bahlil stated that ASEAN will have substantial energy reserves to supply countries in Southeast Asia.
“In Southeast Asia, we formulated yesterday to create a hub for oil reserve storage for ASEAN. This is a good idea,” Bahlil said.
ASEAN economic ministers are also said to have approved the acceleration of APSA resolution amid global oil supply chain disruptions.
ASEAN Secretary-General Kao Kim Hourn assured that the ratification process for the ASEAN Petroleum Security Agreement (APSA) will be completed before the 49th ASEAN Summit at the end of this year.
The agreement, besides enhancing regional cooperation and integration in the energy sector, also enables ASEAN members to assist each other during fuel shortages.
The APSA mechanism allows ASEAN members to supply fuel to other members experiencing stock shortages of at least 10 percent of their domestic needs.
Meanwhile, the 49th ASEAN Summit is scheduled to take place from 10 to 12 November 2026 in the Philippine capital, Manila.