Indonesia has changed the rules for buying imported fuel, shifting Pertamina’s business-to-business import procurement onto government-to-government and government-to-business schemes run through the BLU Lemigas agency. Under Presidential Regulation No. 107 of 2026, Pertamina then buys the procured commodities. Energy Minister Bahlil Lahadalia defended the change at a press conference on Monday, 26 October.
The government says the move is needed because supply has tightened. Energy and Mineral Resources Ministry records show that 25 percent of Indonesia’s oil import sources were lost because of the Middle East conflict. Pertamina has reported national fuel stock at 16 to 18 days, below the 20-day standard referenced in the record.
Procurement under scrutiny
The regulation reverses an earlier direction. In April 2026, Presidential Regulation No. 26 of 2026 set out procurement of oil, fuel and LPG for national energy security. Regulation No. 107 then limited Pertamina’s role in import procurement.
Lemigas, a technical unit under the ministry’s Directorate General of Oil and Gas, had no direct role in import procurement before this change. Bahlil said Pertamina had run very long tenders, and that after deals were won and closed, some cargoes were given to other countries that paid more. He said the government was learning from that experience.
The changes come as the Attorney General’s Office, Kejaksaan Agung, continues a corruption probe that began in 2025. It involves former Pertamina officials and private parties linked to Riza Chalid.
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Consumption climbs
Demand for subsidised fuel has also risen. Average daily distribution of Pertalite was 75,795 kiloliters before the increase, and reached 82,760 kiloliters a day in June 2026, a rise of 9.19 percent. Distribution on 1 July 2026 was 85,589 kiloliters.
BPH Migas head Wahyudi Anas said Pertalite consumption rose 12.92 percent above normal consumption in the 1-31 July 2026 period. Pertalite consumption rose after non-subsidised fuel prices were increased in June 2026.
Bahlil said the government wants more flexibility in sourcing energy amid global market conditions, including from countries facing geopolitical risk or under international sanctions.
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Source: Energy and Mineral Resources Ministry
