Jakarta, Indonesia Sentinel — Indonesia’s Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has announced plans to cut the country’s crude oil exports in 2025 by nearly half of the previously set target.
Indonesia’s crude oil exports are projected to reach around 28 million barrels this year. However, Bahlil aims to redirect approximately 12-13 million barrels to bolster domestic refinery supplies. This would leave about 15-16 million barrels available for export throughout 2025, according to Kumparan.
The government intends to reallocate all state-owned crude oil, originally designated for export, to domestic refineries. Bahlil emphasized that crude oil exports will be minimized to maximize domestic refinery utilization, ultimately boosting national fuel production.
“In line with President Prabowo’s directive, we have instructed domestic refineries to process all available crude oil, even those previously deemed unsuitable due to specification issues. As a result, crude oil exports will decline further,” Bahlil said in a statement on Wednesday, January 29, as reported by Kumparan.
Additionally, contractors’ crude oil that does not meet standard specifications will be processed and blended to meet domestic refinery requirements. Bahlil described this policy as a critical step toward achieving energy self-sufficiency.
Enhance Domestic Refinement
At the same time, the government is working to enhance domestic refining capacity and upgrade refinery technology. Major refineries in Balikpapan, Cilacap, and Dumai have been improved to process a wider range of crude oil grades, including those previously considered non-compliant with industry standards.
The government is also pushing for the accelerated development of new refineries, such as the Tuban and Balongan facilities, to further expand domestic processing capacity in the coming years.
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To implement this policy, the Ministry of Energy and Mineral Resources has instructed the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), oil and gas contractors (KKKS), and state-owned energy giant PT Pertamina to collaborate on optimizing domestic crude oil utilization.
“We urge SKK Migas, KKKS, and Pertamina to ensure that domestic crude oil adds value within Indonesia, thereby reducing dependence on imports,” Bahlil concluded.
(Raidi/Agung)
