Jakarta. Indonesia has secured domestic and international investors for a planned large-scale crude oil storage facility aimed at strengthening the country’s energy security, Energy and Mineral Resources Minister Bahlil Lahadalia said on Thursday.

The project is intended to significantly expand Indonesia’s strategic petroleum storage capacity, allowing the country to maintain oil reserves equivalent to three months of consumption.

Currently, Indonesia’s storage capacity is sufficient for only about 25 days of supply, leaving the country vulnerable to disruptions in global energy markets.

“The investors are already there. The investment will come from a mix of domestic and international sources, but not from the United States,” Bahlil said, adding that the storage facilities will be developed by private-sector operators.

The proposal for the large-scale storage facility gained urgency following recent military strikes by Israel and the United States against Iran, which pushed global oil prices above $80 per barrel as shipments through the Strait of Hormuz declined sharply due to security concerns.

Roughly 20% of the world’s daily oil consumption — about 20 million barrels per day — passes through the strategic maritime corridor.

Indonesia’s domestic oil production currently stands at around 600,000 barrels per day, meaning the country relies heavily on imports to meet its fuel demand.

With limited storage capacity, Indonesia has little ability to secure long-term supplies during global disruptions.

According to Bahlil, President Prabowo Subianto has instructed the government to accelerate the development of the new storage infrastructure.

“The president has directed us to immediately build the storage facility. We need this for survival; otherwise we will continue to depend heavily on oil imports,” Bahlil said.

He previously indicated that the new strategic storage facility is planned to be built on Sumatra, though further project details have yet to be disclosed.

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