Indonesia pushes for ASEAN oil storage hub in Sumatra

Speaking on May 11, Indonesia’s Minister of Energy and Mineral Resources, Bahlil Lahadalia, said the country is promoting the establishment of a shared ASEAN strategic oil reserve to help member states respond to potential energy supply disruptions and future crises.

According to the minister, Indonesia is already coordinating with Malaysia, Brunei, and the Philippines on the initiative. The proposed storage hub would function as a regional emergency energy reserve for ASEAN nations during periods of instability.

At the same time, Indonesia is moving ahead with plans to build its own national oil storage facility in a special economic zone in Sumatra. The project is currently under feasibility review and is expected to significantly increase the country’s fuel reserve capacity.

Bahlil emphasized that Indonesia will continue developing the Sumatra facility regardless of whether it is ultimately chosen to host the ASEAN-wide storage hub.

The proposal comes as energy security has become a growing concern for Southeast Asian leaders. During the 48th ASEAN Summit held in Cebu, the Philippines, on May 7-8, regional leaders discussed the increasing threat of a global energy crisis driven by geopolitical tensions and supply chain uncertainties.

Key topics included diversifying energy sources, improving cross-border electricity connectivity, and strengthening ASEAN’s long-term energy resilience.

Earlier, it was reported ADB is to mobilize 30 billion US dollars by 2030 to support ASEAN countries.