Indonesia's plan for Oil, Gas, and LPG reserves by 2035

Indonesia has issued a presidential decree to establish strategic energy reserves by 2035, including LPG, oil, and gasoline. 

According to Argus, the government aims to build reserves of 9.64 million barrels of gasoline, 10.17 million barrels of oil, and 525,800 tons of LPG over the next 11 years.

These reserves are designed to safeguard the country against risks such as global oil price volatility, supply disruptions, and natural disasters.

Djoko Siswanto, Secretary-General of the National Energy Council (NEC), emphasized the importance of energy security and stated that the development of these reserves will proceed in stages based on the country's financial capacity. 

Funding for the reserves will come from the state budget and other legal sources. 

The NEC will supervise the regulation, while the Ministry of Energy and authorized companies will manage the reserves, covering procurement, infrastructure development, and maintenance.

Reserve locations will be determined by local geological conditions, infrastructure availability, and distribution ease. 

Where necessary, new facilities will be constructed. 

Indonesia is also working toward increasing its oil production to 1 million barrels per day and boosting gas output by 2030. 

The country imported  around 369,000 b/d of gasoline and 29,000 b/d of crude in 2023.

In August, the Energy Ministry revealed plans to boost oil and gas output by reactivating as many as 1,500 idle wells, drilling over 1,000 new wells annually, and raising recovery rates at current wells from 30% to 50%, according to information from Argus.

Indonesia's plan for Oil, Gas, and LPG reserves by 2035

What kind of oil does Indonesia have?

Indonesia primarily produces crude oil, with key types including light sweet crude and medium sour crude. 

These types of oil are classified based on their sulfur content and density. Indonesia's oil production is concentrated in areas like Sumatra, Kalimantan, and offshore fields.

In terms of exports, Indonesia exports its crude oil to various countries in the Asia-Pacific region. Major destinations include:

Tailandia

China

Australia

Singapore

These countries are among the largest importers of Indonesian crude oil, using it for refining and domestic consumption. However, due to declining domestic production, Indonesia also imports oil to meet its own demand, primarily for refined products like gasoline and diesel.