Indonesian Political, Business & Finance News

Indonesia's Fuel Reserves Stand at Just 20 Days, While Developed Nations Hold as Much as 11,111 Days

| Source: CNBC Translated from Indonesian | Energy
Indonesia's Fuel Reserves Stand at Just 20 Days, While Developed Nations Hold as Much as 11,111 Days
Image: CNBC

Jakarta — Global oil supplies are now under renewed pressure following the escalation of conflict between the United States, Israel, and Iran, which continues unabated.

Tensions in the Middle East, particularly surrounding the Strait of Hormuz, are disrupting global energy supplies and driving oil prices sharply higher. The widening conflict has impeded tanker traffic and regional oil supplies, whilst Brent crude temporarily surged above US$100 per barrel on Monday’s trading (9 March 2026), marking its highest level since 2022.

Amid these circumstances, domestic oil reserves have become critically important for every nation. When trade routes are disrupted, oil shipments can be delayed, halted, or temporarily severed.

If a country lacks adequate reserve buffers, global supply disruptions can quickly translate into domestic problems, ranging from pressure on fuel distribution to surging energy costs domestically. Therefore, maintaining oil reserves is not merely a logistical matter but a question of national energy security.

Indonesia’s Fuel Reserves Below One Month

Amid rising global geopolitical tensions, attention has returned to Indonesia’s fuel reserves. Energy and Mineral Resources Minister Bahlil Lahadalia explained that the nation’s fuel reserves currently stand at 20-25 days.

According to him, this figure does not indicate that Indonesia deliberately maintains reserves at this low level; rather, it reflects the limited storage capacity for fuel domestically.

Bahlil emphasised that Indonesia’s fuel storage capacity has long been limited to 21-25 days. This means the primary constraint is not the ability to supply fuel, but rather the limitation of storage facilities. Therefore, even if the government wishes to increase reserves, the lack of storage space remains the principal obstacle.

According to Energy and Mineral Resources Ministry data, national fuel consumption in 2024 reached 82.9 million kilolitres (KL). Calculated daily, Indonesia’s average fuel consumption is approximately 227,136 KL per day.

Currently, Indonesia’s fuel reserves consist solely of operational reserves held by state enterprises such as PT Pertamina. Indonesia does not yet possess a strategic energy buffer or Strategic Petroleum Reserve (SPR) provided by the state, as maintained by many developed nations such as the United States, Japan, and China. Thus, the existing operational reserves serve to meet daily national fuel requirements.

Under normal circumstances, storage capacity of 21-25 days can be envisioned as a fuel tank that can meet Indonesia’s daily fuel needs for 21-25 days. As reserves decrease daily to meet consumption, the tank refills according to its capacity the following day. This means the tank is continuously replenished daily, rather than waiting 21-25 days for refilling. However, the current global situation is far from normal, with nations competing fiercely for oil and fuel supplies.

Differences in Calculation Methods with Developed Nations

Here, a fundamental distinction between Indonesia and many developed nations becomes apparent.

International Energy Agency (IEA) member states are required to maintain oil reserves equivalent to a minimum of 90 days of net imports. This means the calculation basis is not daily domestic consumption as commonly understood in Indonesia, but rather the average daily net import quantity required from abroad.

In Europe, regulations are even more detailed. European Union member states must maintain oil reserves equivalent to at least 90 days of average daily net imports or 61 days of average daily domestic consumption, whichever is greater.

These requirements demonstrate that oil reserves in Europe are genuinely positioned as a buffer against supply disruptions, rather than merely routine distribution stock.

Oil Reserves of IEA Member States

Latest IEA data from November 2025 shows significant variation in oil reserve levels among member states. Japan holds reserves equivalent to 206 days, South Korea 214 days, France 122 days, Germany 130 days, the United Kingdom 120 days, and the Netherlands reaches 413 days.

This variation reflects the fact that each nation possesses different import structures, storage capacity, and mechanisms for meeting reserve obligations.

However, there is one fundamental commonality: oil reserves are positioned as part of national energy security strategy, not merely to meet daily distribution needs.

This reveals that Indonesia’s challenge extends beyond simply increasing fuel stock volumes; it must strengthen storage infrastructure to create a genuinely strategic energy buffer.

In the face of supply disruption threats from the Middle East, energy resilience cannot be measured solely by fuel availability at petrol stations today, but by how long Indonesia can sustain itself if oil import flows are truly disrupted or severed.

China’s Strategy: Bulk Purchasing Oil at Lower Prices

China chose to increase its oil reserves when global prices remained relatively low throughout 2025. Whilst many nations exercised caution due to weakening global demand, Beijing purchased crude oil in large quantities and stored it in both commercial and strategic reserves.

This strategy has delivered substantial benefits to China. As Middle Eastern conflict renewed disruptions to supply routes and oil prices surged, China had already built protective stock buffers. This meant the nation was not immediately pressured despite disrupted oil flows from the Middle East.

China also benefited from purchasing discounted oil from sanctioned nations such as Russia and Iran. Beyond lower costs, some of these supplies were already positioned at sea near the region.

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