Indonesia’s 25-Day Fuel Reserve as a Warning for National Energy Security

 By Kusnandar & Co., Attorneys At Law – Jakarta, Indonesia

 

The statement by Indonesia’s Minister of Energy and Mineral Resources, Bahlil Lahadalia, that the country’s fuel reserves can only last around 20–25 days should be taken as a serious warning about the fragility of Indonesia’s energy security. For a country with a large population, growing economic activity, and heavy reliance on fossil fuels, such a reserve level is relatively low. This situation is not merely a technical issue related to storage capacity but also reflects deeper structural challenges in the management of the nation’s energy system.

When compared with many other countries, the standard for strategic oil reserves is generally much higher. Several nations maintain energy reserves that can cover around 90 days of consumption as a precaution against potential disruptions in global supply. Such disruptions may arise from geopolitical conflicts, economic crises, or natural disasters that interfere with energy distribution routes. In these situations, countries with larger reserves are better positioned to maintain economic and social stability.

Indonesia actually possesses considerable natural energy resources. However, over the years, national energy demand has continued to rise alongside population growth and economic development. At the same time, domestic oil production has gradually declined and is no longer able to fully meet the country’s needs. As a result, Indonesia has become increasingly dependent on imported fuel. This dependence makes the nation more vulnerable to fluctuations in global oil prices as well as disruptions in international supply chains.

In his remarks, Bahlil emphasized that the main issue lies not only in the availability of oil but also in the limited storage infrastructure. In other words, even if the government intends to increase the national fuel reserve, the current storage facilities are not sufficient to accommodate a larger supply. This indicates that energy infrastructure development in the past may have focused more on distribution and consumption while paying less attention to strategic reserve capacity.

The government’s plan to develop larger fuel storage facilities should therefore be appreciated as an important initial step toward addressing this problem. If Indonesia manages to expand its storage capacity so that reserves can cover up to three months of consumption, the country’s energy security would become significantly stronger. Adequate reserves are crucial not only for responding to global crises but also for helping the government stabilize domestic fuel prices when international markets experience volatility.

However, building storage infrastructure alone will not be enough. Indonesia also needs to accelerate the diversification of its energy sources by developing renewable energy such as solar power, wind energy, geothermal energy, and bioenergy. This strategy is essential for gradually reducing the country’s dependence on petroleum. In addition, policies promoting energy efficiency must be strengthened so that national energy consumption can be managed more responsibly.

The issue of a 25-day fuel reserve should not be viewed merely as a temporary technical problem but rather as an opportunity to conduct a broader evaluation of Indonesia’s national energy strategy. Energy security is a fundamental component of national resilience. Without a strong and sustainable energy system, economic stability and long-term development could be put at risk.

Therefore, the government should treat this issue as a strategic priority. Investment in energy infrastructure, expansion of strategic reserves, and acceleration of the transition toward cleaner energy sources must move forward simultaneously. If these measures are implemented consistently, Indonesia will not only strengthen its energy security but also ensure more sustainable national development in the future.

By : K&Co - March 5, 2026