Indonesia Signs Regulation for Direct Crude Oil Procurement Amid Fuel Supply Concerns
What happened
President Prabowo Subianto signed a presidential regulation enabling Indonesia to directly procure crude oil, fuel, and LPG through government-to-government schemes. Minister Bahlil stated that recent fuel supply disruptions in Bali were caused by distribution bottlenecks stemming from delayed tanker arrivals from East Java, rather than a lack of national inventory. The government is also addressing potential future risks, such as river silting in Kalimantan.
From antaranews.com
Why it matters
The new regulation strengthens energy procurement governance and national energy security in Indonesia. While national fuel reserves are generally above minimum standards, logistical hurdles and geographical risks, such as those in Kalimantan, pose ongoing challenges to stable fuel distribution.
From antaranews.com
Who's involved
- Prabowo SubiantoPresident who signed the regulation enabling direct crude oil procurement
- IndonesiaThe nation implementing the new energy procurement governance
- KalimantanRegion facing distribution risks due to river silting
- PertaminaState-owned oil and gas company affected by new procurement rules
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- PertaminaSpeculative
Might see changes in operational supply chain governance due to the new direct crude oil procurement regulation.
- KalimantanSpeculative
Could face increased operational costs and supply chain uncertainty from river silting risks.
- East JavaSpeculative
Might experience fuel distribution bottlenecks due to delayed tanker arrivals.
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The entities involved
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Indonesia
island country in Southeast Asia and Oceania
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Kalimantan
Indonesian part of the island of Borneo
Related events
- Low water levels in the Barito River, caused by El Niño, are threatening to prolong dry conditions and constraining coal movements.
- Fuel supply bottlenecks are reported across Bali, Indonesia.
- Indonesia is reducing gas exports and signing a gas swap agreement to prioritize domestic energy needs.
- PT KAL manages a concession in Ketapang, West Kalimantan, overseen by forestry law enforcement director Nugroho.
- Indonesia hosts high-level diplomatic meetings, including with Egyptian President Sisi, while addressing fire issues in Kalimantan and South Sumatra.