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REGULATORY ALERT: Indonesia Introduces New Energy Import Procurement Framework to Strengthen Supply Security

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Indonesia has introduced a new procurement framework for imported crude oil, petroleum fuels (BBM), and liquefied petroleum gas (LPG) under Presidential Regulation No. 107 of 2026. The policy aims to strengthen national energy security, improve supply reliability, and reduce procurement risks amid global geopolitical uncertainties.

On 26 October 2026, Indonesia’s Ministry of Energy and Mineral Resources (ESDM) announced that President Prabowo Subianto had signed Presidential Regulation No. 107 of 2026, introducing changes to the country’s energy import procurement mechanism.

The new framework shifts procurement away from primary reliance on business-to-business (B2B) tenders toward government-to-government (G2G) and government-to-business (G2B) arrangements.

 

KEY REGULATORY CHANGES

1. Introduction of Government-Led Import Procurement

Under the new framework, the Indonesian Government may negotiate directly with foreign governments and business entities to secure supplies of crude oil, petroleum fuels, and LPG. Previously, imports were primarily conducted through B2B procurement arrangements involving Pertamina and international suppliers.

The Government expects the revised approach to provide greater flexibility in securing energy supplies and reduce procurement uncertainties associated with conventional tender processes.

 

2. Procurement Through a Designated Government Agency

A designated Public Service Agency (Badan Layanan Umum, BLU) will undertake procurement under the new mechanism. Pertamina will subsequently purchase the imported products from the BLU for domestic supply.

According to ESDM, direct imports by Pertamina will remain possible under certain circumstances, including critically low national reserves or geopolitical disruptions affecting source countries, subject to coordination with the BLU.

 

3. Development of Domestic Oil Storage Infrastructure

Alongside the procurement reforms, the Government has announced plans to develop additional domestic crude oil storage facilities. These facilities are intended to allow imported crude oil to be delivered directly to Indonesia without requiring intermediate storage in other countries.

ESDM indicated that the storage infrastructure would be developed through cooperation between the designated BLU and business partners. The initiative aims to strengthen domestic energy reserves and improve supply-chain resilience.

 

IMPLICATIONS FOR SWISS COMPANIES OPERATING IN INDONESIA

Energy Trading and Supply Chains

Companies involved in petroleum and LPG trading should monitor how the revised procurement framework affects supplier eligibility, contractual arrangements, and access to Indonesian energy procurement opportunities. Further implementation details will be important for understanding the participation of foreign companies under the G2G and G2B mechanisms.

 

Manufacturing and Industrial Operations

For Swiss manufacturers operating in Indonesia, reliable energy supplies are essential to maintaining production continuity and managing operating costs. The revised procurement framework is intended to improve supply security. However, its actual impact on industrial energy costs and availability will depend on implementation and market conditions.

 

Industrial Technology and Infrastructure

The Government’s planned investment in domestic oil storage infrastructure may create potential opportunities for companies providing industrial equipment, automation, measurement systems, engineering services, and related technologies. Such opportunities remain prospective, as specific projects, procurement schedules, and participation requirements have not yet been confirmed.

 

 

OFFICIAL SOURCES:

 

DISCLAIMER:

This article is provided by SwissCham Indonesia for general information purposes only and does not constitute legal, regulatory, financial, or professional advice. Information is based on official government announcements available at the time of publication. The full promulgated text and detailed implementation provisions should be consulted to confirm applicable legal requirements. Businesses are encouraged to seek professional advice regarding their specific circumstances.

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