Indonesia Assures Fuel Supply Security Amidst Rupiah Weakness

Indonesia's Ministry of Energy and Mineral Resources has affirmed that the nation's fuel supply remains stable, even as the rupiah experiences a weakening exchange rate. The ministry assures the public that fuel reserves, for both subsidized and non-subsidized fuels, are comfortably above the minimum operational requirements, guaranteeing that all public needs will be met.

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If for the availability of fuel, we have an indicator of minimum operational reserve availability. This is our minimum reserve, the current reserve is far above the minimum reserve.

According to Deputy Minister of Energy and Mineral Resources, Yuliot Tanjung, the government is actively monitoring global energy markets and the rupiah's performance to maintain national energy supply security. He confirmed that reserves for various fuel types, including Pertalite, Solar CN48, Pertamax, Pertamax Turbo, and CN51, are all at adequate levels, exceeding minimum operational benchmarks.

The government is also prioritizing domestic oil and gas production and enhancing the capacity of national refineries. These measures aim to decrease reliance on imports and strengthen energy resilience amidst global market volatility. Tanjung highlighted that a new presidential regulation, Perpres No. 26/2026, facilitates the procurement of crude oil, finished fuel, and LPG, offering greater flexibility. This regulation allows crude oil from cooperation contract contractors (KKKS) that was previously earmarked for export to be prioritized for domestic use, with prices pegged to the Indonesian Crude Price (ICP).

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For the increase in subsidized fuel prices, it has been conveyed, according to our calculations, there is domestic production that we are pushing for an increase, refineries in the country are also prepared.

While bolstering domestic production, the government maintains the option to import fuel through Pertamina and Pertamina Patra Niaga if necessary. The new regulations also empower energy public service bodies (BLU), such as Lemigas, to participate in national energy procurement, including sourcing from international markets. This multi-pronged approach, combining domestic production, refinery upgrades, and flexible procurement, is expected to ensure a secure fuel supply despite the rupiah's pressure and global market dynamics.

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So from this regulation, imports can be made.