Oil from East Java's Largest Field 100% Processed Domestically

Jakarta, CNBC Indonesia - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) has confirmed that the entire crude oil production from the US-based company ExxonMobil in Indonesia, specifically the Cepu Block in Bojonegoro, East Java, is fully supplied for domestic needs. This is aimed at strengthening national energy resilience amid global war tensions. SKK Migas Head Djoko Siswanto stated that they are encouraging the oil and gas working contract contractor (KKKS) not to export its oil production any longer. He explained that this has increased the absorption of crude oil by domestic refineries compared to previous years. “Alhamdulillah, ExxonMobil’s KKKS portion is now 100% processed domestically,” Djoko said when met at the Ministry of Energy and Mineral Resources office in Jakarta, quoted on Wednesday (8/4/2026). The increased supply of crude oil to domestic refineries is the government’s response to the heating geopolitical situation. Thanks to this policy, nearly all national crude oil production or lifting now flows to refineries within the country. “It’s improving, improving. 98.2% if I’m not mistaken,” he added. Besides ExxonMobil, SKK Migas is also working to hold back exports from other producers like MedcoEnergi. Although there is no official export ban this year, the government opts for negotiation using special clauses to delay shipments abroad if the oil supply is urgently needed domestically. “Medco is just waiting for the letter from the minister. I’ve actually sent a letter stating that in Medco’s export contract with the foreign buyer, if the government needs it, the shipment can be postponed to the following year,” he explained. Regarding the selling price of crude oil to the domestic market, Djoko mentioned that Pertamina, as the buyer, will conduct direct negotiations to keep it economical. Purchasing oil domestically is considered far more beneficial for Pertamina than sourcing from the global market where prices are soaring. “Negotiation. Medco wants no gain no loss, meaning if the contract price is, say, ICP plus 1-2 dollars, Pertamina also pays 1-2 dollars. Compared to buying on the market, which is now more expensive. What’s the market price now, 100? If the contract is ICP plus only 2 dollars, which is more profitable?” he emphasised.