Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has announced changes to the fuel import permit period as part of ongoing reforms to the country's fuel import and export trade system.
"The fuel import permit, which was previously valid for one year, will now be reduced to six months, with evaluations conducted every three months," Bahlil told the media on Wednesday (February 26).
This move aims to strengthen oversight and provide greater flexibility in managing the national fuel supply, he added.
The announcement comes amid an investigation by the Attorney General’s Office (AGO) into an alleged corruption case related to crude oil and refinery products management between 2018 and 2023. The AGO has detained seven suspects in the case, including senior officials from PT Pertamina subsidiaries.
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In addition to revising the import permit period, the government has imposed a ban on crude oil exports, which were previously permitted. Bahlil emphasized that all domestically produced oil must now be processed within the country to optimize existing refinery capacity.
“Oil that was once exported is no longer allowed for export,” he stated.
He explained that domestic processing of oil would align with the capabilities of current refineries, while awaiting upgrades to refinery capacity through more advanced technology.
One of the methods to be employed is the blending of various types of crude oil to achieve specifications that meet industrial requirements.
Currently, fuel import permits from the Ministry of Energy and Mineral Resources must be renewed annually. Importing companies are also required to hold the appropriate business licenses, such as processing or trading business permits.
Furthermore, they must submit regular reports to the Directorate General of Oil and Gas (Migas) every three months, or as necessary, in accordance with Article 11 of ESDM Ministerial Regulation No. 35 of 2016.
Editing by Reiner Simanjuntak
