Pertamina to partner with foreign investors on 90-day oil storage

State energy firm PT Pertamina will partner with foreign investors to develop crude oil storage facilities in Sumatra capable of holding up to 90 days of supply, the Energy and Mineral Resources Ministry said, as the government moves to strengthen national energy security.

Laode Sulaeman, Director General of Oil and Gas at the ministry, said the project would adopt a collaboration scheme similar to the partnership model used in the government’s Refinery Development Master Plan (RDMP).

“One of the partners will be Pertamina, similar to the RDMP scheme,” Laode said on Wednesday at an event organized by the Indonesian Energy, Mineral and Coal Suppliers Association (ASPEBINDO) in Jakarta.

He did not disclose the estimated investment value, saying the government is currently focused on achieving the 90-day storage target mandated under a 2024 presidential regulation.

The policy refers to Presidential Regulation No. 96 of 2024 on Strategic Energy Reserves, which sets targets for national reserves of 10 million barrels of crude oil, 9.6 million barrels of fuel and around 523,000 metric tons of liquefied petroleum gas (LPG).

The reserves will be built gradually until 2035, taking into account the country’s fiscal capacity.

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Laode said the initial phase of new storage development would be concentrated in Sumatra, but declined to disclose which foreign investors have expressed interest in participating.

“We are still holding discussions with potential investors. The concept is similar to RDMP, but applied to other refineries so that storage capacity and throughput can increase,” he said.

Earlier, Energy and Mineral Resources Minister Bahlil Lahadalia said the storage development plan had been reported to President Prabowo Subianto, who instructed that the project be implemented as soon as possible.

According to Bahlil, expanding oil storage capacity is a critical step to strengthen Indonesia’s energy resilience.

“I have reported to the President and he directed us to immediately start construction. This is about survival. If we want energy security, we must address the core issues quickly so we do not remain dependent,” Bahlil said earlier this month.

He added that investors have already been identified, with funding expected to come from a mix of domestic and international sources.

“The investment will be a blend of domestic and foreign capital, but it will not come from the United States,” Bahlil said.

Editing by Reiner Simanjuntak