Indonesia’s government has outlined measures to maintain national energy security as escalating tensions in the Middle East disrupt global oil and liquefied natural gas (LNG) trade routes. Officials say domestic fuel supplies remain stable despite uncertainty linked to the conflict involving Iran, Israel and the United States. Authorities are monitoring global developments while maintaining refinery output, diversifying import sources and accelerating longer-term strategies to strengthen energy resilience.
Global Conflict Raises Concerns Over Energy Supply Routes
According to official statements reported by ANTARA, the conflict has had worldwide implications, particularly for countries that rely on imported oil. The situation has been intensified by the closure of the Strait of Hormuz by Iran, a key maritime corridor responsible for around 20% of global oil and LNG trade flows.
The disruption has delayed roughly 150 vessels and introduced uncertainty into international energy markets. For Indonesia, which continues to depend on imports to meet domestic demand, developments in the region are being closely monitored by the government and energy authorities.
Government Maintains Fuel Supply Through Imports and Refining
Satya Hangga Yudha Widya Putra, Expert Staff to the Minister of Energy and Mineral Resources, stated that Indonesia’s energy supply remains stable despite the external pressures. The country currently produces around 600,000 barrels of oil per day while domestic consumption is approximately 1.6 million barrels.
To address the gap, the government continues to rely on imports while ensuring that national refinery operations run consistently. Import sources are being diversified, including supplies from the United States, Latin America, Africa and Australia, in order to reduce dependence on any single region.
Officials emphasised that Indonesia’s fuel reserves, currently estimated at 27–28 days of stock, should not be interpreted as static supply levels. Ongoing production and continuous imports mean that national fuel availability remains stable even as global prices fluctuate.
Strengthening Energy Resilience Through Infrastructure
The government is also expanding strategic storage capacity. New oil storage facilities are being developed in Sumatra as part of broader downstream energy policies and national energy security initiatives under Presidential Regulation No. 1 of 2025.
This effort forms part of a wider approach to improving national resilience, alongside other policy reforms and technology initiatives aimed at strengthening governance and infrastructure. Similar cross-sector initiatives can be seen in areas such as Indonesia’s efforts to strengthen payment systems for digital growth and programmes focused on secure digital identity frameworks, including biometric SIM registration to enhance digital security.
Short-Term Measures to Manage Fuel Demand
In the short term, policymakers are exploring measures to reduce fuel consumption. One proposal involves implementing a work-from-home day once per week for some sectors, which officials estimate could reduce fuel usage by up to 20%.
Demand management is being considered alongside continued monitoring of global supply risks and price volatility, ensuring that contingency measures can be deployed if necessary.
Accelerating the Transition to Renewable Energy
Over the medium to long term, Indonesia plans to reduce reliance on imported fossil fuels by accelerating the transition to renewable energy sources. Government programmes are prioritising geothermal, solar and wind energy development as part of the country’s broader energy transition strategy.
In addition, Indonesia is continuing to expand its biodiesel blending programme. The existing B40 diesel-biodiesel blend is expected to increase to B50, reflecting the government’s intention to strengthen domestic energy production while reducing exposure to international oil market volatility.
