Pertamina Secures Energy Procurement Before Iran-US Conflict
Jakarta - PT Pertamina Patra Niaga has already secured (locked in) energy procurement before geopolitical conflict erupted in the Middle East involving Iran and the United States.
According to Pertamina Patra Niaga Chief Executive Officer Mars Ega Legowo Putra, the company’s procurement contracts take two forms: long-term contracts and spot market purchases. The vast majority—approximately 90 to 95 percent—are long-term arrangements that have already been secured.
“We already locked in procurement before the geopolitical situation in the Middle East occurred,” Mars Ega Legowo Putra stated at the Jakarta-Cikampek toll road rest area in West Java on Monday.
Pertamina Patra Niaga is currently monitoring deliveries related to these procurement arrangements as part of its risk mitigation strategy. Planning for March supplies commenced in January, covering both domestically refined products and required imports.
“We’ve prepared March’s supplies since January. Pertamina Patra Niaga has been planning product availability for March, whether produced by our refineries or requiring importation,” he explained.
The company avoids sudden procurement needs by front-loading its planning. Arrangements prepared in January are reviewed again in February, with additional top-up supplies scheduled for March and ongoing rolling replenishment to maintain stocks above 21 days.
Energy and Mineral Resources Minister Bahlil Lahadalia clarified that Indonesia does not import refined petroleum products from the Middle East. The country imports only crude oil from the region, representing 20 percent of total crude oil imports, whilst refined fuel products are sourced from Africa, South America, and Southeast Asia.
Current diesel demand is met entirely from domestic production, supported by biodiesel blending programmes and the operational Balikpapan Refinery Development Master Plan (RDMP). Petrol remains the only refined product still requiring imports, sourced from Malaysia and Singapore.