Domestic oil processing reaches 98.2%, government eyes Medco crude
Tuesday, April 7 2026 - 07:48 AM WIB
By Calvin Purba
Indonesia’s upstream oil and gas regulator SKK Migas said that nearly all of the country’s crude oil production is now being processed domestically.
SKK Migas head Djoko Siswanto said 98.2% of national oil output is currently absorbed within the country, an improvement compared with last year.
“Better than last year, now it has reached 98.2%,” Djoko said on Monday (April 6).
The government has introduced policies to increase domestic processing in a bid to strengthen energy security amid rising geopolitical tensions in the Middle East.
One of the key developments has been the redirection of crude previously exported to the domestic market, including output from ExxonMobil. Djoko noted that all of ExxonMobil’s crude production in Indonesia is now supplied domestically.
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To further improve supply reliability, SKK Migas plans to divert crude oil allocations from PT Medco Energi Internasional Tbk to the domestic market. Djoko said the plan is awaiting a formal directive from Energy and Mineral Resources Minister Bahlil Lahadalia.
He added that under existing export contracts, crude shipments can be delayed if required by the government.
“Medco is just waiting for the minister’s letter. In its contract with overseas buyers, if the government requires it, exports can be postponed,” Djoko said.
Apart from Medco, another contractor that still exports crude oil is Texcal Mahato, although Djoko noted that no discussions have yet been held with the company.
Editing by Reiner Simanjuntak