New regulations permit government to suspend oil exports during emergencies

Government can now suspend domestic oil exports during emergencies to safeguard national energy security.

The new policy is outlined in Presidential Regulation (Perpres) No. 26 of 2026 concerning the Procurement of Crude Oil, Petroleum Products, and Liquefied Petroleum Gas (LPG) for National Energy Security, signed on 30 April 2026.

Article 10 of the regulation states: “In urgent situations involving crude oil and/or by-products from domestic upstream oil and gas activities…”

Deputy Energy and Mineral Resources Minister (ESDM) Yuliot Tanjung explained that crude oil procurement for national energy security can come from domestic production, including from KKKS companies.

He said production previously allocated for export can be redirected to the domestic market at prices tied to the Indonesian Crude Price (ICP).

“Companies with export commitments can sell domestically at ICP prices, ensuring no detriment to KKKS firms,” Tanjung stated at the ESDM on Friday, 29 May 2026.

The regulation also allows Energy Sector Public Service Agencies (BLUs) to handle oil imports, not just state-owned enterprises (BUMNs).

Article 4(2) states: “For import procurement through intergovernmental agreements or central government cooperation with overseas suppliers, imports may be carried out by Energy Sector BLUs and/or Energy Sector BUMNs.”

He added that the BLU being prepared is the Oil and Gas Agency (Lemigas).

“We will optimise existing BLUs, including Lemigas, for procurement,” he said.

Tanjung also noted that oil imports can still be handled by BUMNs such as PT Pertamina (Persero), but the government is opening avenues for BLUs in the energy sector to participate.