Executive Summary: Improving Fuel Governance for Energy Security

BM is not only the main source of energy, but also plays a strategic role in economic stability and community welfare.

The management of fuel oil (BBM) in Indonesia is a crucial aspect of the national energy system. Fuel is not only the main source of energy, but also plays a strategic role in economic stability and community welfare. However, its management still faces various structural and policy challenges.

In the midst of declining domestic oil production, Pertamina continues to strive to fulfill its duty to provide affordable and readily available energy. On the other hand, the government has begun preparing various measures to anticipate future energy crises.

Several steps were taken:

  • The government requires the blending of 10% ethanol into fuel oil (BBM), known as the E10 policy.
  • Pertamina International Refinery (KPI) is strengthening its refinery and petrochemical capacity to support the low-carbon energy transition.
  • The government is encouraging the utilization of new renewable energy (EBT) such as solar, wind, and biomass to reduce dependence on fossil energy.
  • The government is preparing the future workforce through green training and revised competency standards.
  • Education focuses on the electricity and renewable energy sub-sectors to support a just and inclusive transition.

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On the other hand, Pertamina is also still trying to build refineries, although this is not a definitive answer to the problem of fuel management that sometimes harms consumers. However, various ways are needed so that the country does not spend too much on importing oil.

Things that can be prepared for the energy crisis:

  • Pertamina's six operating refineries have met 70% of fuel demand from domestic production, with a processing capacity of 1.05 million barrels per day.
  • During the 2019-2024 period, Pertamina has completed 11 strategic refinery projects spread across five locations. Namely, the Cilacap Refinery, Balongan Refinery, Balikpapan Refinery, Dumai Refinery, and PT Trans-Pacific Petrochemical Indotama (TPPI) Refinery in Tuban.
  • By 2022, Pertamina has also completed the Balongan RDMP and increased the oil processing capacity of the Balongan Refinery from 125,000 barrels to 150,000 barrels per day.
  • Three strategic projects of PT Kilang Pertamina International that are part of the Balikpapan RDMP project have been completed, namely the Senipah Balikpapan Pipeline.

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