Indonesia's diesel import halt buffers supply against global risks
“We would like to assure the Indonesian public that our country has ceased diesel fuel imports,” he said Thursday, noting that concerns over supply have been cleared.
While conducting an inspection in Central Java, monitored from Jakarta, he emphasized that the no-import policy was largely driven by the implementation of the refinery development master plan (RDMP), which significantly upgraded Indonesia’s largest oil refinery in Balikpapan, East Kalimantan.
President Prabowo Subianto on January 12 inaugurated the expansion project, which boosted the refinery’s processing capacity to 360 thousand barrels of oil per day. The facility is operated by state-run energy company Pertamina.
Lahadalia noted that the RDMP prompted the government to withhold permits for diesel fuel imports, consequently compelling private gas station operators to source supplies from Pertamina.
However, the minister confirmed that Indonesia still relies on imports to meet 50 percent of its gasoline needs, adding that the government has identified alternative countries to obtain crude oil supply amid Middle East tensions, including Angola, Brazil, the United States, and Russia.
“Furthermore, imported LPG continues to account for about 70 percent of Indonesia’s needs,” he added, while assuring the public that national stocks remain adequate.
Against that backdrop, Lahadalia urged residents to remain calm and avoid panic buying over fears of an energy crisis. “Just exercise prudence in energy consumption,” he told the public.
He made the remarks to assuage public concerns that Indonesia could face fuel shortages as a result of the war involving Iran, Israel, and the United States, which has left at least 1,340 people dead since February 28.
Amid the conflict, Iran restricted shipping access to the Strait of Hormuz, one of the world’s most pivotal lanes for oil distribution, driving up prices globally.
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Translator: Putu Indah, Tegar Nurfitra