Jakarta—The Indonesian government has enacted Presidential Regulation (Perpres) Number 96 of 2024 on Energy Buffer Reserves (CPE) to ensure the availability of stable, safe, and affordable energy for the entire community, especially in the face of global price fluctuations and potential natural disasters.
Secretary General of the National Energy Council (DEN), Djoko Siswanto, stated that the CPE Presidential Regulation will be the legal umbrella needed to effectively build and manage energy reserves. “This regulation will provide clear direction for the government in ensuring national energy security through the provision of adequate buffer reserves,” said Djoko in an official statement on Friday, September 6.
The government realizes the huge risks that can arise from fluctuations in world oil prices, natural disasters, or supply disruptions. Therefore, this Presidential Regulation is expected to serve as a guideline for mitigating these risks by providing sufficient energy reserves. Regulations regarding these reserves’ type, amount, location, and management will be implemented gradually until 2035.
“This regulation covers CPE, which consists of petroleum, gasoline fuel oil (BBM), and liquefied petroleum gas (LPG). These types are chosen because of their strategic role in national consumption, and most of their sources come from imports,” Djoko explained.
The energy reserves regulated in this Presidential Regulation include 9.64 million barrels of gasoline fuel, 525.78 thousand metric tons of LPG, and 10.17 million barrels of petroleum. The government targets providing these reserves in stages, taking into account the state’s financial capacity.
Minister of Energy and Mineral Resources’ responsibility
Djoko explained that the National Energy Council will regulate the entire CPE mechanism, while its management is under the responsibility of the Minister of Energy and Mineral Resources (MEMR). In accordance with applicable regulations, this management can involve business entities that have business licenses in the energy sector.
“CPE management involves infrastructure procurement, reserve maintenance, and the use of CPE when an energy crisis or emergency occurs,” Djoko added. The procurement of energy reserves will be sourced from domestic production and imports, with storage locations selected based on technical feasibility, infrastructure, and potential disaster risks.
The location of CPE storage will be determined through the DEN Member Council, considering the optimization of existing infrastructure. If the infrastructure is insufficient, the government will build new facilities. “The location must meet requirements such as ease of distribution, spatial planning, and the potential for an energy crisis in the region,” Djoko explained.
Djoko emphasised that funding for CPE management will come from the State Budget and other legal sources. The management of these funds will be further regulated through a Minister of Energy and Mineral Resources Regulation. In addition, the government will also conduct guidance and supervision to ensure implementation following the provisions.
“With the presence of this Presidential Regulation, Indonesia is getting closer to becoming an independent country in the energy sector. The government is committed to continuing to realize national energy security for the people’s welfare and the nation’s progress,” Djoko concluded.
Presidential Regulation No. 96 of 2024 also refers to the provisions in Presidential Regulation No. 41 of 2016, which regulates the procedures for determining and overcoming the energy crisis. Thus, the mechanism for overcoming the energy crisis can be carried out more structured and planned, ensuring that energy remains available to the community even in emergencies. (Hartatik)
