TEMPO.CO, Jakarta - Indonesian Minister of Energy and Mineral Resources, Bahlil Lahadalia, said the limited capacity of oil storage in the country remains the primary challenge in boosting the national reserves.
According to Bahlil, Indonesia's oil storage capacity has long stagnated at 25 days, with the minimum national reserve standard being between 20 and 23 days.
"I'm saying that ouroil storage capacity has long been limited to a maximum of 25 days. Maximum. Thus, our national reserves are at a minimum of 20 to 23 days," said Bahlil as quoted by Antara on Wednesday, March 4, 2026.
Bahlil said the public cannot demand an increase in reserves to 60 days without considering the available infrastructure capacity, as the issue lies with the limited storage capacity and not the availability of oil supply.
"It's not that we don't have the reserves, but where are we going to put it now? Our storage is not sufficient," he said.
Bahlil mentioned that President Prabowo has instructed the government to immediately build new storage facilities to strengthen national energy resilience. With the addition of such infrastructure, he estimates that Indonesia could retain up to three months' worth of oil reserves.
Regarding where the facilities are going to be constructed, Bahlil mentioned that one of the best alternatives ever studied was in the Sumatra region. The government is currently finalizing further steps to realize the increased storage capacity.
Read: Strait of Hormuz Oil Trade by Country: 5 Nations Most at Risk of Disruption
Click here to get the latest news updates from Tempo on Google News
Japan-Indonesia Oil Reserves Disparity Amid Iran War Explained
1 jam lalu
Japan retains 254 days' worth of oil reserves, while Indonesia has less than a month worth of oil.
Strait of Hormuz Oil Trade by Country: 5 Nations Most at Risk of Disruption
3 jam lalu
Understanding the oil trade from the strait of Hormuz by country highlights how deeply many major economies rely on this passage.
How a Broader US-Iran War Could Strain Indonesia's State Budget
5 jam lalu
Coordinating Ministry for Economic Affairs said even a modest increase in oil prices would significantly strain the state budget.
JCI Plunges 4.3% as Oil Prices Slide
5 jam lalu
The Jakarta Composite Index (JCI) closed down to 7,596 in the first trading session.
Soaring Oil Prices: Challenges Ahead for Indonesia
6 jam lalu
The price of Brent crude oil today rose to US$82 per barrel.
Iran Attacks on Gulf Oil and Gas Sites Trigger Energy Fears
22 jam lalu
Iranian attacks on refineries, gas plants, and tankers heighten global energy supply fears, risking economic fallout from Asia to Europe.
Subsidized Fuel Prices in Indonesia Hold Steady Despite Rising Oil Prices
23 jam lalu
Under the 2026 State Budget, the Indonesian Crude Price is set at US$70 per barrel, but market prices have climbed to US$78-80.
Iran Says It Will 'Set Ablaze' Any Ship Trying to Pass Through Strait of Hormuz
1 hari lalu
Nearly one-fifth of global oil consumption flows through the Strait of Hormuz each day, located between Iran and Oman.
Can China Benefit from the US-Israel War with Iran?
1 hari lalu
China has firmly criticized the killings of Iranian leaders by the US and Israel, warning against "the law of the jungle" in international relations.
The Soaring Costs of Oil Purchases
1 hari lalu
Indonesia is set to import crude oil, refined fuel products, and liquefied petroleum gas from the United States worth US$15 billion.
