Jakarta – The Indonesian government has prepared an Energy Buffer Reserve (CPE) fund until 2035, amounting to Rp 69 trillion (USD 4.4 billion), to improve the country’s energy security, according to the National Energy Board (DEN).
According to DEN Secretary General Djoko Siswanto in an online press conference on Thursday, January 18, the move was taken in response to a potential energy crisis and emergency conditions that could affect the stability of the national energy supply.
He said the draft presidential regulation (Perpres) on CPE is almost complete, involving several ministries, including the Ministry of Maritime Affairs and Investment, the Ministry of Energy and Mineral Resources (EMR), the Ministry of Finance, and the Ministry of SOEs. He also said that relevant ministries have supported the draft Perpres, but several articles still require further discussion by the Minister of SOEs.
Siswanto said that in 2019, the government allocated Rp 1 trillion from the state budget for CPE, but because the draft regulation has yet to be signed, the funds cannot be implemented. With the completion of the draft presidential regulation, financing from the state budget is expected to be soon available to support CPE.
“The government will prepare Rp 64 trillion to Rp 69 trillion, which will be realised gradually until 2035 so that Indonesia has 30 days of crude oil, LPG and fuel reserves,” he said.
Siswanto said the funds will be used for several strategic purposes. First, to purchase CPE commodities, including crude oil, LPG, and fuel. He admits that the allocation for these needs will be the most significant portion of the fund. Furthermore, part of the funds will be allocated to prepare infrastructure, such as utilising unused tanks, leasing depots or terminals, and building new infrastructure if needed.
In addition, the government will also consider the option of renting depots or terminals from other business entities to store energy reserves. If these efforts are inadequate, new infrastructure development is an alternative. Siswanto said that the implementation of CPE must pay attention to a necessary clause, which is adjusted to the country’s ability and that energy reserves must be kept in Indonesia.
This step is considered an essential tactical strategy to improve Indonesia’s energy security amid uncertain global conditions and the increasing complexity of challenges in the energy sector. “The government hopes that these efforts will provide better security of energy supply and improve the competitiveness of the national economy,” he said. (Hartatik)
