Jakarta – The government, through the Ministry of Energy and Mineral Resources (MEMR), is drafting a new regulation that will ban crude oil exports to reduce dependence on imports and ensure the availability of domestic supplies. Minister of Energy and Mineral Resources Bahlil Lahadalia, in an official statement on Thursday, 27 February, stressed that oil production in Indonesia must be entirely directed to meet national needs.
“We must prioritise crude oil produced in the country for domestic needs. We no longer allow exports as before,” Bahlil said. He also said that challenges related to differences in oil specifications with national refinery technology were not a reason to continue exporting.
Bahlil explained that oil of a quality less compatible with domestic refinery specifications can be processed by blending with higher-quality oil. This way, crude oil previously considered incompatible with Indonesian refineries can still be optimally utilised.
“We will encourage blending technology so that oil that previously could not be processed in domestic refineries can now be processed here. This is a step that must be taken so that we are not constantly dependent on imports,” he said.
Since 2018, the government has required PSCs to offer their crude oil to Pertamina before it is exported. However, this policy still provides a loophole for KKKS to continue exporting if there is a price disagreement or the oil produced does not meet Pertamina’s refinery specifications. With the new rules being drafted, this export option will be removed entirely.
This stricter regulation also responds to the Attorney General’s Office’s findings regarding alleged corrupt practices in oil governance. Some parties allegedly deliberately imported crude oil at high prices while domestic oil was left unabsorbed due to specification discrepancies that could have been resolved.
“We want this regulation to not only strengthen national energy security but also close the loopholes of abuse that have been happening,” Bahlil added.
With this policy plan, the government hopes domestic oil production can be better utilised for national needs, reduce dependence on imports, and create more transparent and efficient energy governance. (Hartatik)
Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2025)
