Yes Donny, I believe that porous material in a blade soaks up the oil and retains the smell. I have one blade that I bought in Jakarta in 1974 that still has the smell of some sort of oil that was used on it before I bought it; the material in this blade is very porous.
It is best to store any blade outside its scabbard. Technologically capable museums store in temperature and humidity controlled rooms with the objects on glass shelves. I store in plastic sleeves after oiling. If the scabbard is just a little bit loose and the plastic sleeve is not too thick the blade will still enter the scabbard.
Surabaya is a very unfriendly climate for keris and anything else --- people included. Its a hot, wet climate.
I have used silica gel. I've got some big one kilo bags of the stuff that I have in some boxes and chests. It certainly won't do any harm.
If you want to try the plastic sleeves you can buy rolls of plastic sleeving at the plastik shops that sell to people who make food to sell in the markets and off street barrows. It comes in different sizes and thicknesses.
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