15 hours ago
11
January 30, 2025 | 09:33 am
TEMPO.CO, Jakarta - The Institute for Essential Services Reform (IESR) responded to the Ministry of Energy and Mineral Resources (ESDM) move to reduce crude oil exports or crude oil to be processed in domestic refineries. IESR suggested that the government review the move because there is potential that the export scheme could be more profitable in terms of foreign exchange surplus.
IESR Executive Director Fabby Tumiwa said that Indonesian oil is of good quality. Therefore, the export scheme is more profitable. Meanwhile, Indonesia can also import for domestic needs. "Indonesian oil is more profitable to export," he said on Thursday, January 30, 2025.
By relying on crude oil exports and then importing cheaper materials from abroad, according to Fabby, it will increase opportunities for foreign exchange earnings. "Because if exported, it will be more expensive, then we import oil with lower specifications to be processed in our refineries," he said.
According to him, the government also needs to consider the ability of national refineries to process crude oil which requires a more specific type of refinery. "It is possible to do so as long as Pertamina's refineries can accept oil produced from the field. Make no mistake, the refinery is made to process oil with certain specifications," he said.
Previously, Minister of Energy and Mineral Resources Bahlil Lahadalia said that crude oil that was previously exported would be processed at national refineries. "As directed by President Prabowo, we ask domestic refineries to utilize all crude," he said in an official statement on Monday, January 27, 2025.
The government, said Bahlil, continues strengthening efforts to achieve national energy independence by optimizing domestic crude oil utilization. "With this step, crude export will continue to decline," Bahlil said.
In addition, the contractor's share of crude oil that does not meet specifications will also be processed and blended to meet the standards required for domestic refinery consumption. The policy is considered to accelerate energy self-sufficiency.
The government estimates that Indonesia's crude oil exports will reach 28 million barrels this year. Around 12 to 13 million barrels are targeted to be processed domestically. This policy is expected to increase the national fuel oil (BBM) supply while reducing dependence on fuel imports.
ESDM claims that large refineries such as Balikpapan, Cilacap, and Dumai have been able to process crude oil with various specifications. The government is also accelerating the construction of new refineries, such as in Tuban and Balongan, to increase processing capacity in the coming years. "We encourage SKK Migas, Cooperation Contractors (KKKS), and Pertamina so that domestic crude oil can provide added value in the country, thus helping to reduce imports," he said.
DANI ASWARA | AISHA SHAIDRA
Editor's Choice: Indonesia and Malaysia Strengthen Cooperation in Palm Oil Sector
Click here to get the latest news updates from Tempo on Google News
Trade Minister Optimistic Export to Grow by 7.1 Percent in 2025
6 hari lalu
Trade Minister Budi Santoso is confident that Indonesia's exports can increase by 7.1 percent in 2025.
Indonesia to Import 280,000 Tons Beef, Buffalo Meat as FMD Disrupts Supply Ahead of Ramadan
6 hari lalu
The government is set to import 180,000 tons of beef and 100,000 tons of buffalo meat ahead of Ramadan, which falls in March this year.
Trudeau Says Canada Is Ready to Respond to Possible Trump Tariffs
7 hari lalu
Trump is expected to impose 25 percent duties on imports from Canada and Mexico.
The Reason Prabowo is Confident Indonesia Will No Longer Import Fuel in the Next 5 Years
8 hari lalu
Indonesian President Prabowo Subianto believes that Indonesia will soon achieve energy independence or self-sufficiency in the near future.
Foot and Mouth Disease in Indonesia Expected to Cause Rp40tn Losses
12 hari lalu
The losses caused by the foot and mouth disease (FMD) outbreak are expected to affect not only the livestock industry but export performance as well.
Indonesia's Motorcycle Exports Surpass 572,000 Units in 2024
15 hari lalu
More than half, or 50.06 percent, of the motorcycles exported last year were automatic motorcycles.
7 Reasons Why Indonesia Still Reliant on Oil Imports
15 hari lalu
Indonesia remains an importer of oil. This often raises the question, why does a country brimming with oil reserves need fuel imports?
Indonesia Eyes Lower Trade Tariffs from U.S. Trump's Administration
15 hari lalu
Indonesia will propose a trade tariff reduction to the United States (U.S.).
Indonesia to Import 2 Million Cattle Until 2029 for Free Nutritious Meal
20 hari lalu
The deputy minister of agriculture, Sudaryono, confirms that Indonesia will import 2 million dairy and beef cattle for the next five years.
Energy Minister Says Freeport Seeks Extension of Export Permit
21 hari lalu
PT Freeport Indonesia (PTFI) has submitted an application for an extension of its copper concentrate export permit.
