Indonesia plans Sumatra crude storage expansion to cover 60 days
Feasibility studies are complete, with safety assessments of proposed sites due to begin by year-end, a minister said.
Indonesia plans to build facilities across Sumatra to hold enough imported crude oil for 60 days of domestic demand, Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia said in Jakarta.
Speaking after a limited meeting with President Prabowo Subianto, Bahlil said feasibility studies had been completed. Assessments of potential sites would begin by year-end, covering earthquake risks and local security. He said disaster-prone locations would be excluded.
Bahlil said the expansion would move Indonesia towards the International Energy Agency's benchmark for its members: oil stocks equivalent to 90 days of net imports. He said the government wanted to approach that level even if it could not meet it.
The minister also discussed preparations for an E20 mandate, under which gasoline would need to contain at least 20 per cent ethanol produced from plant-based feedstocks. He said Prabowo had asked about readiness for implementation, and strategic plans covered both E20 and E50.
Ensuring adequate bioethanol feedstock would require coordination between the agriculture and energy ministries, Bahlil said. He also reaffirmed the government's commitment to B50, requiring a 50 per cent biodiesel blend in diesel fuel, describing it as protection against energy supply disruption linked to geopolitical tensions.
