Indonesia is stepping up a coordinated energy security strategy as heightened geopolitical tensions threaten global oil supplies and domestic fiscal stability. As a net oil importer, the country faces direct exposure to volatile prices and shipping risks, prompting a policy response that combines public-sector efficiency, diversified import routes, diplomatic engagement and a faster transition to renewable energy. The approach is framed by President Prabowo Subianto as a move from reactive crisis management to long-term energy sovereignty.
The measures were outlined in a report by ANTARA, which highlights the Strait of Hormuz as a central risk factor. Around 20 percent of the world’s crude oil shipments pass through the strait each day, and increased surveillance in the area has amplified concerns for importing countries such as Indonesia.
Public-sector efficiency as a policy signal
The government’s immediate focus is on reducing energy consumption across state institutions, positioning the public sector as a model for wider society. Planned measures include flexible work arrangements for civil servants, tighter controls on official travel and the optimisation of government buildings, supported by stronger digital platforms.
These steps are scheduled to take effect from April 2026 and are intended to deliver sustained reductions in fuel and electricity use. Education policies are also being adjusted, with a hybrid approach to online and in-person learning, while practical vocational training will continue on site to maintain skills standards. The emphasis on digital tools aligns with broader efforts to embed smart technology and innovation across public services.
Maintaining fuel stability while managing demand
Alongside efficiency measures, the government has reaffirmed its commitment to keeping subsidised fuel prices stable as a social protection measure. Officials have urged the public to avoid panic buying, noting that national fuel stocks remain secure at an estimated 21 to 25 days, supported by ongoing domestic production and imports.
Flexible work and work-from-home arrangements are also under review as a means of reducing daily mobility and fuel demand. Beyond technical interventions, policymakers have stressed the need to build a culture of energy conservation as part of national economic resilience.
Diversifying import routes to reduce geopolitical exposure
Indonesia is complementing domestic efficiency with a strategic diversification of energy imports. A portion of crude oil procurement is being shifted from the Middle East to the United States, with other potential partners, including Russia, considered on the basis of economic competitiveness. The objective is to reduce reliance on high-risk maritime routes without increasing overall import volumes.
A US$15 billion energy procurement commitment has been secured through a trade agreement with the United States, covering refined fuel products, crude oil for national reserves and liquefied petroleum gas. All purchases are being conducted at market prices to limit fiscal pressure. In parallel, the government continues to work towards a 90-day Emergency Energy Reserve target to strengthen preparedness for sudden supply disruptions.
Diplomacy, security and the clean energy transition
Recognising that energy security extends beyond national borders, Indonesia is intensifying diplomatic engagement in the Indo-Pacific to support the safety of global shipping lanes and improve risk mapping. These efforts are also creating opportunities for technology transfer as the country accelerates its shift towards cleaner energy sources.
New and Renewable Energy currently accounts for about 15.75 percent of Indonesia’s energy mix, with a target of 17 to 21 percent by 2026. To speed up implementation, the President has appointed the Energy and Mineral Resources Minister to lead a National Energy Transition Acceleration Task Force. Priorities include a 100-gigawatt solar programme, expanded bioenergy use, electric vehicle adoption and further development of geothermal capacity, which already exceeds 2.6 gigawatts.
Energy infrastructure protection has also been flagged as a growing concern. Analysts have warned that modern conflicts increasingly target power grids and government data systems, underlining the relevance of ongoing initiatives to strengthen national cyber resilience. These efforts sit alongside broader international cooperation, including work to strengthen innovation and resilience with partners such as the UK.
Taken together, Indonesia’s response reflects an attempt to balance short-term risk management with structural reform. By combining efficiency, diversification, diplomacy and energy transition, the government is seeking to insulate the economy from external shocks while laying the groundwork for greater self-reliance in an increasingly uncertain global energy landscape.
