Research Agency Turned Oil Importer

12 hours ago 24

TEMPO.CO, Jakarta - The Research and Development Center for Oil and Gas Technology (Lemigas) has taken on a new role this year. After spending six decades as Indonesia’s principal research and testing institution for the oil and gas sector, Lemigas—a public service agency under the Ministry of Energy and Mineral Resources—has now been assigned to import crude oil, refined fuels, and liquefied petroleum gas (LPG).

The new mandate is set out in Energy and Mineral Resources Ministerial Decree No. 224/2026. “The Lemigas Public Service Agency shall procure crude oil, refined fuels, and/or liquefied petroleum gas directly from overseas suppliers,” the decree states.

The ministerial decree implements several higher-level regulations, including Presidential Regulation No. 26/2026, signed by President Prabowo Subianto on April 30, 2026, establishing a new framework for national energy procurement. The regulation allows public service agencies in the energy sector to import crude oil, fuel, and gas through government-to-government arrangements or partnerships between the government and foreign suppliers. Until now, such imports had been handled exclusively by state oil and gas company Pertamina.

The presidential regulation also establishes import procedures for emergency situations, including geopolitical conflicts that disrupt energy supplies, supply-chain interruptions, natural disasters, supply shortages that drive up prices, or when national energy reserves fall below a designated threshold. The Minister of Energy and Mineral Resources is authorized to declare an “emergency condition.” The government also permits variations in purchase prices based on volume, product type, country of origin, and delivery schedule.

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