Indonesia’s government is preparing the state agency BLU Lemigas to become the sole importer of crude oil, fuel oil and LPG, under Presidential Regulation No. 107 of 2026. The regulation changes how those products are procured. Lemigas would buy from supplier countries and sell on to Pertamina, replacing Pertamina’s current business-to-business import scheme with a government-to-government one.
The Energy and Mineral Resources Ministry set out the plan at a press conference on Monday, 26 October. Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia said procurement would be carried out by the BLU. Pertamina would then buy from it.
Why the change
The government says the tender system run through Pertamina subsidiary Pertamina Patra Niaga took a long time. Tenders also did not guarantee supply, even when won at competitive prices. The new scheme lets the government choose countries of origin according to needs and global market conditions.
Lemigas was previously focused on research, testing and technical services. It was first appointed importer of crude oil from Russia in March 2026, under Presidential Regulation No. 26 of 2026.
Scope of the regulation
The regulation covers crude oil, fuel oil and LPG.
Related: Indonesia shifts crude and fuel imports to state agency Lemigas · Indonesia eyes India, China as alternative fuel suppliers
Source: Energy and Mineral Resources Ministry | Data: FRED — St. Louis Fed
