Indonesia’s Strategic Moves in Navigating the Oil Crisis

Despite assurances from the government that Indonesia's oil and gas supply safety amid the escalating Iran-Israel conflict, precautionary measures to prepare for potential domestic energy crises, particularly regarding oil, are still being considered.

Stepanus I Nyoman A. Wahyudi

20 Apr 2024 - 18.23
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Indonesia’s Strategic Moves in Navigating the Oil Crisis

Pertamina refinery in Tanjung Priok, Jakarta

Bisnis, JAKARTA — The escalating geopolitical tensions in the Middle East, particularly triggered by Israel's attack on Iran, have raised concerns globally, including in Indonesia. Given Indonesia's heavy reliance on other countries, particularly for crude oil supplies, the situation is particularly worrisome.

The escalation of the Iran-Israel conflict between, alongside ongoing tensions between Israel and Palestine, raises concerns about potential disruptions to the supply chain and oil shipments from the Strait of Hormuz and other Middle Eastern countries, which are major global suppliers of crude oil.

Despite assurances from the government that Indonesia's oil and gas supply safety amid the escalating Iran-Israel conflict, precautionary measures to prepare for potential domestic energy crises, particularly regarding oil, are still being considered.

The Ministry of Energy and Mineral Resources (ESDM) currently observes that the national fuel oil (BBM) stocks are at approximately 30 days, indicating a relatively secure position. Additionally, PT Pertamina (Persero) has secured contracts with several foreign fuel suppliers who have committed to maintaining supply according to the agreements.

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© Copyright 2024, Hak Cipta Dilindungi Undang - Undang.