Jakarta (VNA) – Indonesia has proposed hosting an ASEAN oil storage hub while simultaneously planning a separate oil storage facility in Sumatra to enhance both national and regional energy security amid growing global supply uncertainties.
Indonesian Minister of Energy and Mineral Resources Bahlil Lahadalia said on May 11 that Jakarta is promoting an initiative to establish a joint ASEAN strategic oil reserve as Southeast Asia faces increasing risks of global energy supply disruptions.
The minister noted that Indonesia is working with Malaysia, Brunei and the Philippines to advance the proposal. The planned ASEAN oil storage hub is expected to serve as a strategic energy reserve for Southeast Asian countries in the event of crises or supply interruptions.
Alongside the regional initiative, Indonesia is also preparing to build a separate oil storage facility in a special economic zone in Sumatra to boost the country’s energy reserves. The project is currently undergoing a feasibility study and is expected to enhance Indonesia’s fuel reserve capacity.
Bahlil affirmed that the Sumatra project would move forward even if Indonesia is not selected as the host country for the ASEAN oil storage hub.
Earlier, at the 48th ASEAN Summit in Cebu, the Philippines, on May 7-8, ASEAN leaders spent considerable time discussing regional energy security amid mounting geopolitical uncertainties and rising risks of a global energy crisis.
Discussions focused on diversifying energy sources, promoting cross-border power grid connectivity and enhancing the Association of Southeast Asian Nations (ASEAN)’s energy resilience./.
