Up to June, state energy holding company Pertamina has purchased 116.9 thousand barrels of oil per calendar day (MBCD) from local private contractors, an 800 percent jump from  2018’s full-year realization, which stood at 12.8 MBCD.

The jump in the crude intake, which was then distributed to Pertamina's refineries, was supported by the government's policy that required Pertamina and other oil companies to prioritize domestic supply to help reduce oil imports.

Pertamina vice president for corporate communications Fajriyah Usman said on Tuesday that the supply up to June had come from 37 different private oil and gas contractors (KKKS).

"By prioritizing domestic crude production, we’ve secured supply for our refineries," she said in a press statement.

Fajriyah further said Pertamina would continue to buy more crude from the KKKS and that the company had stopped importing heavy crude, super heavy crude, as well as light and medium crude.

The policy to prioritize domestic crude production is based on Energy and Mineral Resources Ministerial Regulation No. 42/2018 on the use of domestic crude production for local demand.

Under the regulation, Pertamina and other oil companies are required to prioritize domestic crude supply, instead of exports. The KKKS and its affiliates should also offer their crude to Pertamina and other fuel companies. (bbn)