Inp.polri.go.id - Jakarta. Minister of Energy and Mineral Resources Bahlil Lahadalia has announced plans to construct an oil storage facility within a Special Economic Zone (KEK) in Sumatra  aimed at strengthening Indonesia’s National Energy Buffer Reserves (CPE).

"We plan to build this in Sumatra. We will establish a Special Economic Zone for it," he said on Monday (11/5/2026), as cited by antaranews.com. 

He noted that the project is currently in the feasibility study (FS) phase.

In addition to domestic goals, Minister Bahlil proposed that Indonesia could serve as a regional hub for ASEAN’s planned oil storage network. This proposal aligns with current regional efforts to accelerate the ASEAN Petroleum Security Agreement (APSA). While discussions regarding the specific location of an ASEAN-wide hub are ongoing with Malaysia, Brunei, and the Philippines, The Minister emphasized that Indonesia will proceed with its Sumatra facility regardless of the regional outcome.

The push for enhanced storage comes as ASEAN leaders seek to secure energy supply chains against global market volatility. Under the APSA framework, which is expected to be ratified before the 49th ASEAN Summit in November 2026, member states can provide emergency fuel supplies to neighbors facing a domestic shortage of 10 percent or more.

(mg/inp/pr/rs)