Jakarta. Indonesia plans to build large crude oil storage facilities at several locations in Sumatra as part of efforts to increase its oil storage capacity from the equivalent of 20 days of supply to 60 days, Energy and Mineral Resources Minister Bahlil Lahadalia said Tuesday.

The proposed facilities would allow Indonesia to store larger volumes of imported crude oil, strengthening the country's ability to cope with disruptions to global energy supplies.

"We will build storage facilities at several locations in Sumatra so that when we import crude oil, we have sufficient space to store it. We want to increase our capacity beyond 20 days, with a target of 60 days," Bahlil said after a meeting with President Prabowo Subianto at the Presidential Palace in Jakarta.

Indonesia currently has oil storage capacity equivalent to approximately 20 days of supply, leaving the country with a relatively limited buffer against potential disruptions to crude oil imports.

Expanding that capacity to 60 days would give Indonesia greater flexibility to manage supply shortages and respond to volatility in international oil markets.

Moving Toward International Standards
Bahlil said the government had completed a feasibility study for the proposed storage facilities and planned to begin assessing potential construction sites by the end of 2026.

He said safety would be a major consideration in selecting the locations, particularly given the risk of earthquakes and other natural disasters in parts of Sumatra.

"One of the factors we are considering is ensuring that the locations where we build these storage facilities are not highly vulnerable to disasters. This is a matter of safety," he said.

The government will also assess security conditions in the surrounding areas before deciding where to build the facilities.

Bahlil did not disclose the proposed storage capacity in barrels, the estimated investment required or a timetable for construction and completion.

The minister said the government ultimately wanted Indonesia's oil reserves to approach an international benchmark equivalent to three months of supply.

"We will try to reach the international minimum standard of three months of stock coverage. If we cannot fully achieve that, we should at least get close to it," Bahlil said.

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