Regulatory Update Strengthening Indonesia’s Energy Supply and National Energy Security under Indonesia’s Presidential Regulation No. 26 of 2026

Overview

Presidential Regulation No. 26 of 2026 (PR 26/2026), which entered into force on 30 April 2026, aims to ensure the availability, distribution, and reliability of crude oil, fuel oil or Bahan Bakar Minyak (BBM), and/or Liquefied Petroleum Gas (LPG) supplies from both domestic and international sources. The regulation establishes a governance framework for the procurement of crude oil, BBM, and/or LPG to strengthen the continuity, reliability, and resilience of Indonesia’s national energy supply.(1) The regulation expands the role of Public Service Agencies or Badan Layanan Usaha (BLUs),(1)

The Government also granted clear authority to prioritize energy allocation for domestic needs to safeguard national energy security. This authority includes the option to redirect domestically produced crude oil supplied by Cooperation Contract Contractors or Kontraktor Kontrak Kerja Sama (KKKS) from export markets to the domestic market to maintain a stable supply for domestic refineries.(2) In addition to strengthening supply security, the implementation of these governance measures is closely monitored through mandatory monthly reporting by all state-owned enterprises, public service agencies, and business entities involved in energy procurement to ensure transparency and compliance with applicable laws and regulations.(3)

Key Highlights

Suspension and Restriction of Domestic Crude Oil Exports

In urgent circumstances, where crude oil and/or associated products from domestic upstream oil and gas production are required for national Energy Resilience, the Government may suspend and/or defer exports.(1)

Emergency Import For Energy Support

In the event of an emergency for the provision of domestic needs, energy sector BLUs or energy sector SOEs may procure imports where there are geopolitical conditions that have the potential to disrupt the global availability of Crude Oil, Fuel, and/or LPG, disruptions to the supply chain of Crude Oil, Fuel, and/or LPG domestically and abroad, disasters or force majeure conditions in supplying countries, supply limitations resulting in high price fluctuations, or national minimum reserves of Crude Oil, Fuel, and/or LPG falling below the threshold. The Minister shall determine the emergency situation based on these criteria. In the event of import procurement under emergency circumstances, price differences may be permitted based on quantity, product type, country of origin, and delivery time, in accordance with the purchase contract agreement.(1)

Import Storage and Domestic Utilization

Imported Crude Oil, Fuel, and/or LPG may be stored in KPBPB and/or PLB and such stocks are counted as Energy Buffer Reserves and/or Operational Reserves. BLUs, SOEs, and/or energy sector business entities may procure Crude Oil, Fuel, and/or LPG from overseas suppliers that have been imported and stored in KPBPB and/or PLB to meet domestic needs, based on the allocation determined by the Minister of Energy and Mineral Resources. Sales by BLUs to SOEs and/or energy sector business entities from stocks stored in KPBPB and/or PLB are treated as domestic transactions and settled in Rupiah.(1)

Expanded Import Participation and Transitional Provision

Energy sector business entities may procure imports through cooperation with overseas suppliers, subject to allocation and approval by the Central Government. In addition, emergency procurement determined by the Minister before this Presidential Regulation came into force remains valid.(1)

Regulatory Oversight and Supervision

The Minister of Energy and Mineral Resources supervises the planning and implementation of the procurement of Crude Oil, Fuel, and/or LPG and may conduct such supervision jointly with relevant ministries and/or government agencies. The Regulatory Agency is responsible for regulating and supervising Fuel distribution.(1)

Mandatory Monthly Reporting and Complaint Handling

Based on Article 13, BLUs, SOEs, and/or energy sector business entities conducting procurement are required to submit monthly reports to the Minister no later than the 15th day of the following month. In the event of complaints regarding irregularities and/or abuse in the implementation of procurement, the Minister shall conduct an evaluation. Where such complaints are submitted to the Indonesian National Police, the Attorney General’s Office, and/or the Corruption Eradication Commission (KPK), the administrative process shall take precedence.(1)

References

Presidential Regulation of the Republic of Indonesia No. 26 of 2026 on the Procurement of Crude Oil, Fuel Oil, and/or Liquefied Petroleum Gas for National Energy Security.
Hukumonline. BLU Now Takes the Cake in Crude Oil, BBM and LPG Imports: Mandatory Monthly Reports Introduced and Greater Procurement Flexibility for BUMN. 2026 Jun. (Indonesian Legal Brief). Report 5438. Available from: https://pro.hukumonline.com/a/lt6a1e51efc0e46/blu-now-takes-the-cake-in-crude-oil–bbm-and-lpg-imports–mandatory-monthly-reports-introduced-and-greater-procurement-flexibility-for-bumn
Ronal. Pasardana.id. 2026. Demi Ketahanan Energi Nasional, Pemerintah Bisa Setop Ekspor Minyak. Available from: https://pasardana.id/news/2026/6/3/demi-ketahanan-energi-nasional-pemerintah-bisa-setop-ekspor-minyak

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