Jakarta, CNBC Indonesia - Energy and Mineral Resources Minister\nBahlil Lahadalia has admitted that the current geopolitical situation is\ninfluencing energy subsidies, particularly in the wake of the closure of\nthe Strait of Hormuz, a key logistics route for energy imports from the\nMiddle East. In truth, Bahlil said, there is no issue with energy\navailability in Indonesia; the problem is the potential for energy\nprices to surge, which could affect energy commodities subsidised by the\nstate. \u2018What cannot happen is a price rise that impacts subsidies. So we\nare now calculating carefully, with caution,\u2019 he said at the Ministry of\nESDM office in Jakarta, quoted on Thursday (5 March 2026).<\/p>\n
Following the conflict between Iran and Israel\/the United States,\nIran decided to close the artery of world oil traffic through the Strait\nof Hormuz, which handles around 20.1 million barrels per day. For\nIndonesia, around 19% of national oil imports come via the Strait of\nHormuz. At present two Pertamina cargo oil tankers are still trapped in\nthe narrow waters of the Persian Gulf.<\/p>\n
As a substitute, Bahlil explained that Indonesia has begun importing\nfrom the United States gradually. \u2018Gradual means gradual; we cannot come\nall at once because our storage capacity is not sufficient. The problem\nnow is storage, which is why we want to build storage now; otherwise we\nnever think about it,\u2019 Bahlil said at the ESDM Ministry office, quoted\nThursday (5 March 2026).<\/p>\n
He added that President Prabowo Subianto has also instructed\nIndonesia to promptly build storage tanks for fuel oil (BBM storage), so\nIndonesia can be more resilient against similar conditions. \u2018If we talk\nabout survival, we must really identify the core issue and resolve it\npromptly. If not, we will remain dependent,\u2019 he asserted.<\/p>\n
Earlier, Pertamina\u2019s Vice President of Corporate Communications\nMuhammad Baron confirmed that crude oil cargoes from the Middle East\ncurrently account for around 19% of total import value. \u2018Around 19%, and\nwe are already distributing via regular, alternative, and emergency\nsystems. So for national energy resilience, Pertamina has announced\nthese systems to meet national needs,\u2019 Baron said at Grha Pertamia,\nquoted Wednesday (4 March 2026).<\/p>\n
Pertamina is currently coordinating with relevant parties to ensure\nit can continue to meet national energy needs. \u2018The alternatives we are\npursuing are still in process because this is only a matter of days. We\nwill later update the media on the readiness of these alternative\nprocesses,\u2019 Baron emphasised.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bahlil-admits-middle-east-conflict-fuelling-indonesias-energy-subsidies-1772686893", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }