Indonesia to Build Oil Storage Tank for Three-Month Reserve, Here's the Location
Indonesia will soon build oil storage facilities in Sumatra to increase national energy reserve capacity to three months. This decision is considered crucial for strengthening energy resilience amid global geopolitical dynamics, including conflicts in the Middle East.
Energy and Mineral Resources Minister Bahlil Lahadalia stated that Indonesia’s current oil storage capacity remains limited. The country’s current storage capacity can only support approximately 20 to 25 days of national requirements.
Bahlil views the development of storage facilities as a priority so that the government has sufficient space to hold large quantities of oil. “We must build our storage first. For a minimum of three months. If we import a lot, where will we put it? That’s simply the reality, no one is at fault,” Bahlil said at a press conference at the Ministry of Energy and Mineral Resources on Monday, 9 March 2026.
The feasibility study for the project is currently underway and is targeted for implementation this year. However, he has not provided detailed information on the location of the oil storage tank construction. “The feasibility study is underway, targeting this year for implementation. The location in Sumatra—don’t ask me for the details,” he said.
As previously reported, Bahlil, who also serves as Chair of the Downstream Processing and Energy Resilience Task Force, formally handed over the pre-feasibility study documents for the downstream processing and national energy resilience project to the Investment Management Agency (BPI) Daya Anagata Nusantara (Danantara).
During that occasion, Bahlil revealed that at least 18 projects are ready to enter the pre-feasibility study phase. The total investment value of these 18 projects reaches US$38.63 billion, equivalent to Rp 618.3 trillion.
“We have approximately 18 projects that are ready for pre-feasibility study with total investment of US$38.63 billion, equivalent to Rp 618.3 trillion. This is separate from the dedicated vehicle battery ecosystem that we will develop according to the President’s direction in the recent cabinet meeting,” Bahlil said at a press conference on Tuesday, 22 July 2025.
Bahlil elaborated that the 18 projects comprise eight downstream processing projects in the mineral and coal sectors, two energy downstream processing projects, two energy resilience projects, three agricultural downstream processing projects, and three maritime and fisheries downstream processing projects.