Indonesia seeks overseas fuel surpluses to keep reserves amid Middle East war
Indonesia is buying fuel from countries with excess stocks after Middle East conflict cut 25% of its import sources, aiming to secure 18-21 days of reserves.
During a regional inflation coordination meeting, Laode Sulaeman explained that Indonesia is now actively searching for foreign fuel surpluses to replenish its strategic reserves after the outbreak of conflict in the Middle East eliminated a quarter of its usual import partners. The traditional tender system, previously managed by Pertamina, has yielded virtually no bidders, prompting the government to purchase directly from countries with excess inventories, even if prices exceed normal levels.
This "hunting" strategy is designed to keep the national fuel stockpile sufficient for roughly 18 to 20 days. Energy and Mineral Resources Minister Bahlil Lahadalia affirmed that the reserves still meet the 18-21 day minimum despite the geopolitical turmoil. He also noted that President Prabowo Subianto has ordered subsidised fuel prices to remain stable until the end of the year, while market-linked non-subsidised prices will adjust according to market conditions.
Why it matters
Ensuring fuel security protects Indonesia's economy and consumers amid global supply disruptions.
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