Luhut Assures Adequate National Energy Supply
Jakarta — Indonesia’s energy supply, particularly fuel oil and liquefied petroleum gas (LPG), remains at adequate levels to ensure stability amid global geopolitical dynamics, according to Luhut Binsar Pandjaitan, head of the National Economic Council (DEN).
The national energy supply system remains stable, with various anticipatory measures in place to ensure continued energy distribution to the public. “Overall, the condition of national fuel oil supply remains adequate with no fuel supply crisis for vehicles. Our reserves are at levels sufficient to maintain supply stability,” Luhut stated after receiving a briefing from the Director of Planning and Business Development at PT Pertamina Patra Niaga and the Director of Refining Operations at PT Pertamina Patra Niaga in Jakarta on Wednesday.
Based on the presentation by PT Pertamina Patra Niaga, national fuel oil reserves are currently at adequate levels, ensuring that vehicle fuel supply remains stable. Similarly, national LPG reserves are also considered adequate.
Despite pressure from global geopolitical dynamics that could potentially affect energy supply chains, Pertamina has prepared various mitigation measures to ensure continued supplies. These steps include optimising refinery production, including converting propylene production to LPG, increasing Pertalite production from domestic refineries, and renegotiating and strengthening coordination with international suppliers.
Additionally, coordination between PGN and Pertamina Patra Niaga is being undertaken to maximise the use of compressed natural gas (CNG) in industrial sectors capable of switching from LPG, allowing LPG distribution to be focused more on household needs.
“The government through Pertamina has prepared concrete mitigation measures, ranging from refinery production optimisation and energy production adjustments to coordination with global suppliers,” explained Luhut. “This demonstrates that our energy system is sufficiently resilient to face global dynamics.”
The meeting also covered developments regarding two Pertamina tankers currently in regions affected by global geopolitical dynamics. Pertamina confirmed that the MT Pertamina Pride and MT Gamsunoro are currently in safe condition and on standby or hold position, not in emergency status. Communication with both vessels continues at regular four-hour intervals to ensure crew safety and monitor field developments.
The DEN head also stressed that the government has taken anticipatory measures to ensure energy security ahead of the Ramadan exodus period, including strengthening coordination with energy state-owned enterprises and intensified distribution monitoring across various regions.
“The government has also prepared anticipatory measures to ensure fuel oil and LPG supply remain secure ahead of the exodus and Hari Raya Idul Fitri celebrations,” he said.
Global developments also show several factors that could potentially ease pressure on the energy market, including the possible release of oil reserves by G7 nations and projections indicating a de-escalation of geopolitical dynamics in coming weeks.
Luhut stressed that the government will continue to intensively monitor developments to ensure national energy supply stability is maintained. “The most important thing for the public is ensuring energy supply remains available and stable. Based on the briefing we received today, we are optimistic that national energy reserves remain adequate and can be properly managed,” he concluded.