Jakarta. Energy and Mineral Resources Minister Bahlil Lahadalia announced that all state-owned crude oil initially designated for export would now be redirected to domestic refineries.

Additionally, crude oil from contractors that do not meet current specifications will be blended and processed to meet the requirements for local refinery consumption. This initiative aims to enhance the utilization of the country’s oil refineries, increase domestic fuel production, and reduce reliance on imports.

"Following President Prabowo Subianto’s directive, we have instructed domestic refineries to utilize all crude oil, including those previously deemed non-compliant with specifications. This will further reduce crude oil exports," Bahlil said in a statement.

Bahlil added that the government is working to enhance the capacity and technological flexibility of the country’s refineries. Key facilities such as those in Balikpapan, Cilacap, and Dumai are now equipped to process various types of crude oil, including those that previously did not meet standards.

The government is also expediting the construction of new refineries, including the Tuban and Balongan facilities, which are expected to significantly boost processing capacity in the coming years.

Indonesia’s crude oil exports this year are estimated to reach approximately 28 million barrels. Of this, around 12–13 million barrels are targeted to strengthen domestic refinery supply. The Energy and Mineral Resources Ministry has urged oil and gas regulatory body SKK Migas, oil and gas contractors, and state-owned energy company Pertamina to support the policy’s implementation.

"We are encouraging SKK Migas, contractors, and Pertamina to ensure that domestic crude oil adds value locally, thereby reducing imports," Bahlil concluded.