Jakarta, IndonesiaSentinel.com — Indonesia is projected to require around IDR 70 trillion to establish Energy Buffer Reserves (CPE) as outlined in Presidential Regulation (Perpres) No. 96 of 2024. These reserves will cover crude oil, fuel, and Liquefied Petroleum Gas (LPG) through 2035.
According to Djoko Siswanto, Secretary General of the National Energy Council (DEN), the funding will be allocated after conducting a feasibility study to evaluate the infrastructure and storage facilities for the reserves.
“Approximately IDR 70 trillion will be needed by 2035, aligned with the government’s financial planning each year. Initially, we’ll propose a feasibility study to assess which depots have available capacity,” Djoko said during a discussion forum in Jakarta, Thursday, September 12, 2024.
He further explained the need to inventory unused or idle storage facilities and conduct research to identify the most suitable locations for CPE storage. Ideally, these facilities should be close to ports to simplify the importation process for oil, gasoline, and LPG.
This estimated cost includes expenses for storage rental, infrastructure development, and the commodities themselves. The reserves are a key component of Indonesia’s strategy to secure energy supplies amid fluctuating global oil prices, growing energy demand, and potential energy crises.
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Perpres No. 96 of 2024 also specifies the volume of reserves: 9.64 million barrels of gasoline, 525,780 metric tons of LPG, and 10.17 million barrels of crude oil. These reserves will support the country’s energy needs up to 2035.
The regulation mandates collaboration between state-owned energy companies and private businesses for maintaining the reserves, with compensation funded by the national budget. The reserves will be tapped in the event of an energy crisis or emergency.
(Ray)
