Overview Of Indonesia's Energy Buffer Reserve Policy

Domestic energy consumption in Indonesia continues to rise significantly, resulting in concerns about potential energy shortages and scarcity. To address this issue, the government initiated a solution to mitigate the risk associated with increased energy consumption, known as the energy buffer reserve (Cadangan Penyangga Energi or "CPE") by issuing President Regulation No. 96 of 2024 on Energy Buffer Reserves ("PR 96/2024").

Generally, CPE is an energy source stored to fulfil national energy needs within a particular period. It maintains the availability of energy sources and prevents energy crises and emergencies within the country.

In light of the above, we provide a summary of PR 96/2024, specifically regarding: (i) Types and Amounts of CPE, (ii) Storage Locations, and (iii) Private Sector Involvement.