In a strategic move to enhance energy self-sufficiency, Indonesia’s Energy and Mineral Resources Minister, Bahlil Lahadalia, announced that all crude oil previously set for export must now be processed in domestic refineries. This directive, aligning with President Prabowo’s vision, mandates that even crude oil that does not meet local refinery specifications be blended and refined within the country. Major refineries in Balikpapan, Cilacap, and Dumai are expected to handle these adjustments, while new refineries like Tuban and Balongan are being accelerated to expand capacity.

The government aims to redirect approximately 12–13 million barrels of the projected 28 million barrels of crude oil exports in 2025 for local processing. This shift is expected to enhance fuel production, reduce reliance on imports, and create added value for the domestic energy sector. To implement this policy, SKK Migas, KKKS, and PT Pertamina have been instructed to optimize domestic crude processing.
According to Badan Pusat Statistik (BPS), Indonesia’s crude oil exports surged 28.02% in December 2024, contributing to a 17.12% increase in overall oil and gas exports. However, with this new policy, crude oil exports are expected to decline in favor of bolstering local supply. This move marks a crucial step in Indonesia’s long-term strategy to achieve energy independence and strengthen its refining infrastructure.
References: