Indonesia Plans Strategic OilReserve to Whether Price Volatility
In a bid to shield its economy from the unpredictable swings of the global oil market, Indonesia has unveiled ambitious plans to establish a ample oil storage facility on an island in close proximity to Singapore.
This strategic move, announced by Indonesian minister of Energy and Mineral Resources Bahlil Lahadalia, aims to bolster the nation’s energy security by extending its oil reserves to 30 to 40 days’ worth of supply. Currently, Indonesia’s existing storage capacity accommodates only 21 days’ worth of oil. “The facility would be designed to store various types of oil for 30 to 40 days, surpassing the country’s existing oil storage capacity, wich currently holds oil for only 21 days,” Lahadalia explained.
The project is projected to deliver meaningful financial benefits, possibly reducing Indonesia’s annual oil import bill, which currently stands at a staggering 500 trillion rupiah – approximately 31.33 billion U.S. dollars.
Highlighting the urgency behind the initiative, Lahadalia emphasized the widening gap between Indonesia’s domestic oil production and consumption. “Indonesia’s oil production reaches approximately 600,000 barrels per day, while its oil consumption stands at 1.6 million barrels per day,” he noted.
