Fuel Reserve will increase to become 30 Days by the End of the Year

KATADATA - Energy and Mineral Resources (EMR) Minister Sudirman Said has targeted to increase the capacity of fuel storage by 20 percent in the next one and a half month. With the increase, the national fuel reserve will also increase from 24.5 days to become 30 days.

“We say that [fuel reserve] can reach 30 days. It’s still one and a half month away, we can reach 30 days so that the fuel supply data can increase,” Sudirman explained, Jakarta, Sunday (8/11). 

The increase in fuel reserve is also supported with the now-active Trans Pacific Petrochemical Indotama (TPPI) refinery. Right now the production of the refinery has already reach 80 percent from the total capacity of 100,000 barrels per day (bpd).

When it is fully operational, this refinery can save up to 30 percent of fuel import. PT Pertamina (Persero) has also successfully increased its share ownerships in TPPI. And so, the condensates that used to be exported can be re-directed now for domestic use in TPPI refinery.

Besides TPPI, the additional fuel reserve capacity will also be contributed by Cilacap Refinery. The Residual Fluid Catalytic Cracking (RFCC) in Cilacap Refinery has been operational and will be inaugurated this week. Sudirman predicted that with the increase in capacity and optimizing the TPPI and RFCC Cilacap, fuel import can be cut. 

He even said that Indonesia could stop importing solar fuel next year due to the program of oil fuel conversion to gas fuel as well as the biodiesel policy. In this year alone, the import for solar fuel has declined by 80 percent. As a whole, fuel import up to this month has declined by 37 percent.

The data from the EMR Ministry shows that right now, the increase in fuel storage capacity has reached 12 percent, from 4.6 million kiloliter last year to become 5 million kiloliter. The increase can also happen due to the maximization of storage tanks that oil and gas contractors, state-owned enterprises, and private firms have. 

“If all of the projects are running, like a cooperation with Aramco for example, then our [national energy] sustainability will be a lot better,” Sudirman added.