Luhut Binsar: National Energy Stocks Are Sufficient
Luhut Binsar Pandjaitan, Head of the National Economic Council (DEN), has assured that Indonesia’s national energy stocks, particularly petroleum fuel (BBM) and LPG, remain at sufficient and controlled levels amid global geopolitical dynamics. The government has also taken various anticipatory steps to ensure that energy distribution to the public remains secure.
Luhut made this statement after receiving direct briefings from Pertamina’s Director of Planning and Business Development and the Director of Refinery Operations. Pertamina reported on the condition of national energy reserves and mitigation strategies prepared to maintain supply stability.
According to Pertamina Patra Niaga’s presentation, Luhut said national petroleum stocks are currently at adequate levels. Vehicle fuel supply remains in stable condition with no fuel crisis issues. “I have just received direct explanations from Pertamina Patra Niaga. Generally, the condition of national fuel supply remains sufficient and there is no vehicle fuel crisis issue. Our reserves are at a sufficient level to maintain supply stability,” Luhut said in a statement received on Wednesday (11 March).
National LPG reserves are also reported to be adequate. Despite facing pressure from global geopolitical dynamics that could affect the energy supply chain, Pertamina has prepared various mitigation measures to ensure supply security.
These measures include optimising refinery production, including diverting some 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 aims to maximise CNG usage for industrial sectors capable of switching from LPG, allowing LPG distribution to focus more on household needs.
“The government through Pertamina has prepared concrete mitigation measures. From refinery production optimisation, energy production adjustments, to coordination with global suppliers. This demonstrates that our energy system is sufficiently resilient in facing global dynamics,” he explained.
The meeting also covered developments regarding two Pertamina tanker vessels currently in areas affected by global geopolitical dynamics. Pertamina confirmed that MT Pertamina Pride and MT Gamsunoro are currently in safe condition and on standby or holding position, not in emergency status. Communication with both vessels continues regularly every four hours to ensure crew safety and monitor field situation developments.
The DEN Head also emphasised that the government has taken anticipatory steps to ensure energy supply security ahead of the Eid holiday travel period. These include strengthening coordination with state-owned energy companies and conducting more intensive distribution monitoring across various regions.
“The government has also prepared anticipatory measures to ensure petroleum and LPG supply remain secure ahead of the holiday travel and Eid celebrations. We want to ensure that people travelling and celebrating Eid can feel secure because energy needs during this period remain well available,” Luhut said.
He noted that global developments also show several factors with potential to ease pressure on the energy market. These include the possibility of crude oil reserves release by G7 countries and projections of easing geopolitical dynamics in the coming weeks. The DEN Head affirmed that the government will continue monitoring situation developments intensively to ensure national energy supply stability remains maintained.
“What is most important for the public is ensuring energy supply remains available and stable. From the explanations we received today, we are optimistic that the condition of national energy reserves remains sufficient and can be maintained well,” Luhut concluded.