The Indonesian domestic tanker fleet will be officially allowed to break IMO 2020 ruling in domestic waters to allow high stocks of HSFO to be cleared down
The Indonesian Ministry of Maritime Affairs has declared that the domestic fleet will be allowed to burn HSFO in Indonesian waters after 1 January 2020. The justification for non-compliance is that the country holds large stocks of HFSO which will not be cleared down before the introduction of IMO 2020 global sulphur cap.
According to Reuters, the state oil company Pertamina produces 1.9M kilolitres of 180 CST with a 3.5% sulphur content from the Cilacap oil refinery. This is burnt by the state power utility Perusahaan Listrik Negara or PGN, local industries and the shipping sector. There is a large (but unspecified) amount in storage.
The Indonesian flag fleet consist of 1,648 vessels of all types, of which 520 are tankers, according to VesselsValue. These range in size up to VLCC tanker (308,000 dwt), but only those vessels sailing in domestic waters will be allowed to continue to burn HFSO. According to VesselsValue, there are currently 117 tankers with journeys starting and ending in Indonesia. Indonesia will enforce IMO 2020 compliance on foreign-flag vessels in Indonesian waters and states that Indonesian flag vessels will be expected to comply with IMO 2020 on foreign voyages.
Post-IMO 2020 introduction, Indonesia will also not be compliant with the ruling on carrying high sulphur fuels.
It is not clear if the Cilacap oil refinery is equipped to produce low sulphur fuel, if this will be imported or if the refinery will continue to produce HSFO and add to stocks. IMO 2020 clearly states that low sulphur compliance applies to domestic waters, and it is not clear what sanctions, if any, will be placed on Indonesia if it carries out this course of non-compliance.