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Indonesia Assures Energy Security Amid Global Turmoil

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Jakarta, March 26, 2026 – The Europe Today: The Indonesian government has reaffirmed that national energy supplies remain secure despite escalating global tensions, particularly amid conflicts involving Iran, Israel, and the United States in the Middle East.

Expert Staff to the Minister of Energy and Mineral Resources, Satya Hangga Yudha Widya Putra, stated on Wednesday that while the geopolitical situation is impacting global markets—especially oil-importing nations—Indonesia’s domestic energy stability remains intact.

He highlighted that the temporary closure of the Strait of Hormuz by Iran, a critical route handling nearly 20 percent of global oil and LNG shipments, has delayed approximately 150 vessels and created uncertainty in international energy supply chains.

“Indonesia continues to rely on imports, with oil lifting at around 600,000 barrels per day against consumption of 1.6 million barrels. However, national fuel stocks remain safe and under control,” Putra emphasized.

To mitigate risks, the government has maintained steady supply through domestic refinery production and diversified import sources, including the United States, Latin America, Africa, and Australia.

Addressing concerns over fuel stock levels, Putra clarified that Indonesia’s 27–28 days of reserves should not be interpreted as static. “Production and imports are ongoing, ensuring continuous supply even amid rising global prices,” he said.

The government is also enhancing long-term energy resilience by developing oil storage infrastructure in Sumatra under downstream and national energy security initiatives outlined in Presidential Regulation No. 1 of 2025.

In the short term, policy measures such as implementing one work-from-home day per week are expected to reduce fuel consumption by up to 20 percent.

Looking ahead, Indonesia is accelerating its transition toward renewable energy sources, including geothermal, solar, and wind power. The government is also expanding its biodiesel program, with plans to increase the current B40 blend to B50 as part of its broader strategy to ensure sustainable and resilient energy security.