Revision of Perpres on Energy Reserves Expands Funding Sources

The Government is currently accelerating the revision of Regulation of the President No. 96 of 2024 (“Perpres 96/2024”) on Energy Buffer Reserves (Cadangan Penyangga Energi – “CPE”). The Secretary General of the National Energy Council (Dewan Energi Nasional/DEN), Dadan Kusdiana, stated that the amendment is necessary to expand funding sources and improve the management of energy reserves, which have thus far been heavily reliant on State Revenue and Expenditure Budget (Anggaran Pendapatan dan Belanja Negara – “APBN”).

“In the ongoing deliberations, reserves developed in cooperation with the private sector will be positioned as the primary option to be utilized in the event of an energy crisis or emergency,” Dadan stated.

In addition to clarifying private sector participation, the revision of this Perpres also expands the scope of energy commodities. The new regulation will consolidate operational reserves and strategic reserves within a single regulatory framework.

Dadan stated that, whereas the previous regulation focused solely on oil fuel (“BBM”), the new regulation will specifically encompass crude oil and Liquefied Petroleum Gas (“LPG”) reserves. It is expected that this will support the maintenance of the national capacity target for a period of one month.