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Supporting Energy Self-Sufficiency, Government Begins to Reduce Crude Oil Exports

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Jakarta – The Indonesian government has begun reducing crude oil exports as part of its efforts to achieve energy self-sufficiency.

Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, said that this step will accelerate domestic crude oil processing to increase national fuel oil (BBM) production.

“We have asked domestic refineries to utilize all crude oil, including those previously considered not to meet specifications,” said Bahlil.

This policy, he said, will reduce crude oil exports and increase domestic refinery capacity.

Major refineries such as those in Balikpapan, Cilacap, and Dumai are now able to process various types of crude oil that previously did not meet standards.

The government is also committed to continuing to increase domestic refinery capacity and technology.

“We continue to encourage the acceleration of the construction of new refineries, such as the Tuban and Balongan refineries, to increase processing capacity in the next few years,” added Bahlil.

That way, in the next few years, crude oil exports will decrease further, while domestic production will increase.

It is estimated that Indonesia will export around 28 million barrels of crude oil this year. However, 12-13 million barrels of it will be optimized to meet the needs of domestic oil refineries, which aims to reduce dependence on fuel imports.

This step is also in line with the government’s efforts to increase domestic oil and gas production, which is one of the priorities in supporting national energy independence.

On a different occasion, PT Pertamina Hulu Energi (PHE), through the socialization of the concept of cooperation in managing idle well partnerships, also contributed to efforts to increase national oil production.

VP Production & Project PHE, Benny Sidik, explained that one solution to increase production is to reactivate idle wells that have not been used so far.

“We hope that with the help of partners who have good technical and financial capabilities, the reactivation of idle wells can contribute to increasing national oil lifting sustainably,” said Benny at an event held in Jakarta.

Through partnerships with third parties, PHE plans to offer more than 250 idle wells in its operational areas by 2025.

This is part of an effort to accelerate domestic oil and gas production while supporting the government’s energy self-sufficiency program.

The policy of reducing crude oil exports is a concrete step in strengthening Indonesia’s energy security.

The government is optimistic that with the support of all parties, Indonesia will get closer to the target of more independent and sustainable energy self-sufficiency. []

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