Indonesia has changed how it buys crude oil, fuel and LPG abroad. Under the new mechanism, the state-run public service agency Lemigas will handle procurement, and PT Pertamina will then buy the commodities from it. Energy Minister Bahlil Lahadalia announced the change at a press conference at the Ministry of Energy and Mineral Resources on Monday, 26 October.
The change is set out in Presidential Regulation (Perpres) No. 107 of 2026. Bahlil said the procurer is now the Lemigas public service agency, which will carry out government-to-government and government-to-business deals with Pertamina.
Why the scheme is changing
The procurement scheme moves away from business-to-business (B2B) purchasing. The government says the old process was too slow, because import tenders took a long time to complete.
Officials also cited the risk that suppliers cancel deals when another buyer offers a higher price. Government-to-government arrangements are meant to reduce that exposure.
Exceptions and Lemigas’ background
Pertamina may still import directly when national energy reserves are very low, or during geopolitical disruption in a supplier country. It must coordinate with the Lemigas agency first.
Lemigas was founded on 11 June 1965 as a state agency for oil and gas technical functions. It has operated as a fully public service agency since 1 April 2015.
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Source: Ministry of Energy and Mineral Resources
