“We are planning to build it in Sumatra. We will establish a Special Economic Zone,” Lahadalia told reporters at the ministry in Jakarta on Monday.
He said the project is in a feasibility study stage and is expected to strengthen national energy reserves.
Lahadalia added Indonesia had offered to host a planned ASEAN oil storage hub but would proceed with its Sumatra project regardless of the regional plan.
“Even without the ASEAN hub, Indonesia is already building oil storage. The idea emerged as we were ready to implement it,” he said.
No agreement has been reached on the hub’s location. Indonesia would work with Malaysia, Brunei and the Philippines to advance the proposal.
He said the project would allow ASEAN to build larger reserves to support supply security across Southeast Asia.
“In Southeast Asia, we recently proposed creating a hub for ASEAN oil reserves. This is a good idea,” he said.
ASEAN economic ministers have also agreed to accelerate the ASEAN Petroleum Security Agreement (APSA) amid disruptions in global oil supply routes.
ASEAN Secretary-General Kao Kim Hourn said APSA ratification would be completed before the 49th ASEAN Summit later this year.
The pact would enhance regional energy cooperation and allow member states to assist each other during fuel shortages.
Under APSA, members can supply fuel to a country facing shortages equivalent to at least 10 percent of its domestic demand.
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Translator: Putu Indah, Kuntum Khaira
Editor: Rahmad Nasution
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