Skip to main content

Indonesia assigns fuel and LPG imports to Lemigas

Pertamina will buy supplies from the public service agency rather than import them directly under Presidential Regulation No. 107 of 2026.

By Maya Santos

Fuel storage tanks at an energy terminal
Photo: CNBC Indonesia

Indonesia has changed its fuel and liquefied petroleum gas (LPG) import arrangements, assigning procurement to public service agency Lemigas. Energy and Mineral Resources Minister Bahlil Lahadalia said on 26 October 2026 that Pertamina would purchase supplies from the agency instead of handling imports itself.

Presidential Regulation No. 107 of 2026 allows the state, through the agency, to obtain supplies using government-to-government or government-to-business arrangements. Bahlil said the government would take a larger role in negotiating with supplier countries, with the designated agency carrying out procurement before transacting with Pertamina.

Speaking at a press conference at the energy ministry, Bahlil said the change could make procurement more flexible and enable Indonesia to arrange supplies from other countries more quickly.

He said Pertamina's business-to-business approach had involved lengthy tenders and competition from buyers willing to pay more. Even after Pertamina won a tender at a competitive price and reached a deal, he said, suppliers could redirect supplies to another buyer offering a higher price.

Keep reading: Trade & Policy

All Trade & Policy stories

Latest in Finance

All latest