Pertamina Backs New Regulation on Crude Oil, Fuel and LPG Procurement

Jakarta: State-owned energy company PT Pertamina (Persero) has expressed support for Presidential Regulation (Perpres) No. 107 of 2026, which strengthens governance of crude oil, fuel and liquefied petroleum gas (LPG) procurement from domestic and international sources to support national energy security.

Pertamina President Director Simon Aloysius Mantiri said the company was committed to carrying out the government’s mandate professionally and responsibly to safeguard energy supplies for the public and industry.

“Pertamina fully supports Perpres No. 107 of 2026 as a step to strengthen national energy security amid global geopolitical dynamics. We are committed to carrying out the government’s mandate professionally and responsibly so that energy supply for the public and industry remains secure,” Simon said at a press conference at the Ministry of Energy and Mineral Resources (ESDM) in Jakarta, according to a press release issued on Tuesday (Oct. 27, 2026).

The press conference followed a meeting attended by the industry minister, the deputy energy and mineral resources minister, the director general of oil and gas, the head of SKK Migas, and Pertamina Group executives. The meeting discussed measures to anticipate the impact of geopolitical tensions in the Middle East on Indonesia’s energy security.

Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia, who also serves as energy and mineral resources minister, described the regulation as a new chapter in the procurement of crude oil, fuel and LPG.

“With this Perpres, we are using G-to-G and G-to-B schemes, which means we can now choose which countries we source from,” Bahlil said.

Under the regulation, overseas procurement can be conducted through government-to-government (G2G) or government-to-business (G2B) arrangements. Implementation is handled by a public service agency (BLU) appointed by the government.

According to Bahlil, the policy also gives Pertamina and its subsidiary PT Pertamina Patra Niaga greater flexibility to develop energy supply sources and ensure domestic demand is met.

Pertamina Strengthens Infrastructure and Distribution Readiness

Pertamina Vice President of Corporate Communication Muhammad Baron said the company was ready to strengthen coordination with the ESDM Ministry, BLU Lemigas, SKK Migas and other relevant stakeholders in accordance with their respective authorities and mandates.

He said Pertamina had also ensured the readiness of its infrastructure and operations, from refineries and terminals to distribution networks, to support implementation of the policy under government-established mechanisms.

“This Perpres strengthens procurement channels for national energy security. Pertamina is ready to work in synergy with BLU Lemigas and other stakeholders. We share the same goal, which is to keep supply to the public secure,” Baron said.

Baron stressed that domestic crude oil and output from national refineries remained Pertamina’s priorities. Together with SKK Migas and production-sharing contract (PSC) contractors, known as KKKS, the company continues to strengthen crude oil supplies to domestic refineries in line with operational needs and applicable regulations.

“Overseas procurement complements domestic supply to ensure national needs are adequately met,” Baron said.

He added that Pertamina’s immediate priorities were maintaining energy availability and ensuring the smooth distribution of fuel and LPG to the public.

To support these efforts, the company continues to optimize the readiness of its facilities, fleet and distribution network so that the government’s policy can help maintain reliable energy supplies and public services.

“Pertamina will continue to work with all relevant parties to ensure supply reliability and always strive to provide the best service to the public,” Baron said. (Yaumil Tianri Rahmi) 

Also read: Bahlil Confirms Subsidized Fuel Prices will not Rise Through End of 2026