New storage facilities aim to protect Indonesia from future oil supply disruptions.
Indonesia is preparing a major expansion of its crude-oil storage capacity, with new facilities planned across Sumatra as the government seeks a larger buffer against global supply shocks and geopolitical uncertainty.
Indonesia Targets 60 Days of Storage
Indonesia aims to expand storage capacity for imported crude oil to cover as much as 60 days of domestic demand, according to Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia. The government plans to construct storage facilities at several locations across Sumatra so imported crude can be held for significantly longer periods.
Feasibility Studies Already Completed
Bahlil said the engineering feasibility studies for the storage project have been completed. The government expects to begin assessing potential sites by the end of 2026, examining factors including earthquake risks, local security conditions, and the overall safety of strategic oil infrastructure before construction locations are finalized.
Government Wants Larger Energy Buffer
The planned 60-day storage capacity is intended to strengthen Indonesia’s energy security against potential disruptions to international crude oil supplies. Bahlil said the government wants to move closer to the International Energy Agency’s 90-day emergency oil stockholding benchmark for member countries, which is generally measured against net oil imports. Indonesia’s proposed target remains below that benchmark, and the two figures are not necessarily calculated on the same basis.
Geopolitical Risks Drive Planning
Tirto reported that the project is being treated as an early mitigation measure against uncertainty in global geopolitics and potential interruptions to international energy supplies. Bahlil said the government wants strategic storage to be located away from areas with high disaster risk so the facilities remain secure during emergencies.
Biofuel Strategy Also Moves Forward
Alongside the crude-oil storage plan, the government is preparing biofuel policies aimed at reducing dependence on imported fossil fuels. Bahlil said strategic preparations had been made for an E20 gasoline mandate requiring at least 20% ethanol, with planning also extending to a possible E50 blend. He reiterated the government’s commitment to B50 biodiesel, which would require diesel fuel to contain 50% biodiesel. No implementation timeline for E50 was announced.
Indonesia’s 60-day storage target signals a broader effort to strengthen national energy security by combining larger crude reserves with expanded biofuel use. For Indonesians, the policy could provide a stronger buffer against external supply disruptions. For Singaporeans, the move is regionally relevant because changes in Indonesia’s energy-security strategy can influence trade, infrastructure investment, and fuel-market dynamics across Southeast Asia.
Sources: EN Antara (2026) , Tirto (2026)
Keywords: Indonesia Oil Storage, Crude Oil Reserve, Sumatra Storage Facilities, Energy Security Indonesia, Bahlil Lahadalia, Oil Import Reserve
