Bye-Bye B2B Tenders! Looking Deeply Inside Perpres 107/2026 That Turns Lab Agency Lemigas into Indonesia’s Chief Oil Buyer
Oct 29, 2026
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Caught Between a Weak Rupiah and US$100 Crude: How Long Can Indonesia’s Energy Budget Hold?
The US$1.25 billion year-on-year increase in July’s oil and gas bill contributed significantly to Indonesia’s overall monthly imports, which climbed 27.02% annually to US$26.09 billion, while non-oil and gas imports rose 23.83% to US$22.33 billion. Market analysts and government data point to a combination of elevated global crude prices, a persistently weak Indonesian Rupiah, and a domestic upstream production deficit as the core drivers behind the swelling import bill.Ateng Hartono highlighted a sharp divergence between the value and the volume of the country's energy purchases. While the monetary value of oil and gas imports soared by nearly 50%, the physical import volume rose by only 15.44% in July 2026.According to BPS data, the annual jump in July’s energy purchases was fueled by a 51.68% spike in crude oil imports which rose by US$406.3 million alongside a 49.11% increase or US$48.3 million in oil-derived products. Cumulatively, throughout the January - July 2026 period, Indonesia’s oil and gas imports expanded by US$7.39 billion, or 40.24% year-on-year. This seven-month surge was driven by oil-derived product imports totaling US$5.319 billion (up 39.6%) and crude oil imports reaching US$2.075 billion (up 41.81%).Economists warn that this macroeconomic "triple shock" of high global crude prices, a weak Rupiah, and rising logistics costs is feeding directly into imported inflation. Because energy accounts for roughly 15% of input costs across Indonesia’s manufacturing sector, downstream industries particularly petrochemicals, plastics, and packaging that rely on crude derivatives like naphtha are facing narrower profit margins and rising production expenses. At the same time, heavy corporate demand for US dollars to finance oil and gas imports places recurring pressure on Bank Indonesia’s foreign exchange reserves.To ease the financial strain of expensive crude imports while keeping domestic refineries running at optimal capacity, the government has moved to diversify its import sources, including preparing a second phase of crude oil imports from Russia. Energy and Mineral Resources Minister Bahlil Lahadalia confirmed that the procurement is being executed through a Government-to-Government (G2G) and Government-to-Business (G2B) framework involving the Testing Center for Oil and Gas ("We are looking for priority scales that can secure our crude oil supplies first, as long as they do not violate regulations and are economically viable," Minister Bahlil said in Jakarta, emphasizing that alternative crude sourcing is aimed at safeguarding national energy resilience.
HEAL (Healthy Empowerment and Active Living) Free Medical Check-up
With the aim of raising awareness about the significance of health, the Community Outreach Division SPE ITS SC has taken the initiative to organize a medical check-up event called "HEAL” (Healthy Empowerment and Active Living). The event was successfully conducted in collaboration with the Asian Medical Students' Association (AMSA) Universitas Airlangga. Last year, SPE ITS SC also collaborated with AMSA Universitas Airlangga for the same event. SPE ITS SC decided to collaborate with AMSA Universitas Airlangga again as it allowed the committee to proactively monitor and evaluate individuals' health, detect potential issues early, and promote preventive care. Took place on 26th November 2023 at Taman Harmoni Keputih Surabaya, from morning to afternoon, this initiative stems from a recognition of the limited knowledge and awareness surrounding personal health in these communities. “SPE is committed to the welfare of the community, hence we are inspired to conduct health checkup activities for underprivileged communities due to lack of knowledge and awareness of the importance of personal health.” said Ghassa as the Project Officer of the event. In order for the event to be successful, the committee promoted the activities by contacting the head of the local neighborhood association such as RT and RW. “In addition, I distributed brochures to local residents. We maximize promotion by distributing brochures and inviting people around the park on the day of the event. In addition, we also maximized promotion by using SPE's Instagram.” added Ghassa.From the event, the committee successfully checked various health tests, including uric acid, glucose blood sugar, and blood pressure. And although the event ran smoothly, the committee encountered a challenge during data collection due to the overwhelming number of participants. Unfortunately, many residents had to leave empty-handed as the health check tools had run out.In the end, the event turned out to be a significant success, leaving a positive impact in the community. “Residents around Harmony feel very helped by the free health test activities.” Ghassa said. This free medical check-ups event at Taman Harmony has proven to be immensely beneficial for local residents. A considerable number of individuals had never undergone health checkups previously, primarily due to financial constraints and limited awareness about healthcare. Encouraged by the positive impact, residents in the Harmony Park area have expressed a desire to establish free health testing as an annual community event. This growing sentiment underscores the community's recognition of the importance of proactive healthcare and its eagerness to prioritize the well-being of its residents.Written By: Arya Nugraha Aulia Rahman Yusup
RDMP Balikpapan Expected to Boost Domestic Diesel Supply as Indonesia Sets 2026 Zero-Import Goal
Indonesia is set to eliminate diesel imports in 2026, supported by the upcoming operation of the Refinery Development Master Plan (RDMP) Balikpapan, operated by PT Pertamina (Persero). Based on the latest update, the project is now scheduled to be inaugurated by President Prabowo Subianto on 17 December 2025, marking the entry of Indonesia’s largest refinery upgrade into commercial operation. Previously, Minister of Energy and Mineral Resources, Bahlil Lahadalia had stated that the RDMP Balikpapan inauguration was planned for 10 November 2025 following a limited cabinet meeting with President Prabowo on 3 November 2025. At the time, he emphasized that the refinery upgrade would enable Indonesia to meet domestic diesel demand entirely through national production. “Insya Allah, starting 2026 we will no longer import diesel,” Bahlil said. “Because our RDMP refinery in Balikpapan will be inaugurated.” Despite the rescheduled inauguration, the government maintains that RDMP Balikpapan will play a decisive role in strengthening fuel self-sufficiency. The facility is expected to significantly increase Indonesia’s refining capacity and support the national objective of achieving zero diesel imports while also boosting aviation fuel (avtur) supply for both domestic and export markets. The RDMP Balikpapan project is designed to modernize one of Indonesia’s strategic refineries by increasing production capacity, improving fuel quality, and enhancing operational efficiency. The refinery upgrade forms part of Pertamina's long-term downstream investment roadmap to reduce reliance on petroleum imports, strengthen supply resilience, and improve state fiscal performance by reducing the foreign exchange burden from imported fuels. In support of the refinery expansion, the government is also pushing for the implementation of B50 biodiesel, which blends 50% palm oil-based fuel. According to Bahlil, the synergy between RDMP Balikpapan and B50 could shift the domestic diesel balance from deficit to surplus. “If both RDMP and B50 run well, we will have excess diesel and we can export it,” he asserted. The ministry is currently calculating the production forecast and export potential once both programs are fully executed. To date, Indonesia has relied on imported diesel to bridge the gap between domestic refinery capacity and fuel consumption. The cessation of diesel imports is expected to reduce logistics vulnerability during global price fluctuations, strengthen energy independence, and improve the trade balance. Policymakers have highlighted that diesel remains a critical fuel for transportation, mining, agriculture, and industrial sectors, meaning its secure supply is closely tied to national economic performance. The RDMP Balikpapan project has been categorized as a strategic national program due to its magnitude and expected economic impact. The government anticipates that its operation will contribute to regional economic activity, promote industrial employment, and accelerate technology transfer in refinery modernization. Stakeholders, including local governments, logistics operators, and energy-intensive industries are monitoring the commissioning timeline as it will determine fuel distribution adjustments across Kalimantan and other regions. Further information regarding refinery output, the detailed implementation roadmap for B50, and mechanisms for potential diesel exports is expected to be released after the inauguration in November. For now, the government maintains the target of achieving diesel self-sufficiency in 2026, marking what could become a significant milestone in Indonesia’s long-term energy security agenda.Writer: Azzahra Luna Prasetyo
SLB and Star Energy Strengthen Partnership to Advance Sekincau Geothermal Project in Indonesia
Indonesia is stepping up its renewable energy efforts through a strategic partnership between global energy technology company SLB and Star Energy Geothermal. The two companies have signed an agreement to support the development of the Sekincau geothermal project in Lampung, marking a deeper phase of collaboration in the country’s geothermal sector.The agreement, signed on Thursday (February 19), expands beyond earlier technology cooperation into a more comprehensive scope that includes field development planning, subsurface evaluation, and integrated drilling services. SLB will play a key role in providing technical expertise, particularly in subsurface mapping, well planning, and drilling operations, all of which are critical in reducing risk during geothermal development.“Advanced technology, deep technical expertise and disciplined operational performance, through integration across the project lifecycle, are essential to scaling geothermal projects,” said Nurzhan Ongaltayev, managing director, Indonesia, SLB. “These agreements and new collaboration opportunities apply SLB’s subsurface consulting expertise and global execution experience to support geothermal development alongside an experienced operator, from project execution in Indonesia to evaluating opportunities overseas.”The Sekincau geothermal project represents more than just another energy development initiative. It reflects a shift in how geothermal projects are approached, with a stronger emphasis on collaboration, technology integration, and risk reduction.If successful, the partnership between SLB and Star Energy could serve as a model for future geothermal developments in Indonesia. By combining technical expertise with operational experience, the project has the potential to accelerate the country’s transition toward a more sustainable and resilient energy system.As demand for clean energy continues to rise, initiatives like Sekincau highlight the importance of turning Indonesia’s vast geothermal resources into tangible and lasting impact.