{
    "success": true,
    "data": {
        "id": 1750136,
        "msgid": "indonesia-needs-to-diversify-energy-supply-to-face-geopolitical-risks-1779546044",
        "date": "2026-05-19 22:00:32",
        "title": "Indonesia Needs to Diversify Energy Supply to Face Geopolitical Risks",
        "author": "",
        "source": "ANTARA_ID",
        "tags": "",
        "topic": "Energy",
        "summary": "An international relations expert warns that Indonesia must diversify payment mechanisms and energy and food supply sources to strengthen economic resilience amid shifting global geopolitics. He cites Western sanctions risks, the dollar's dominance, and the use of local currencies and bonds, while the government pursues domestic refinery development such as the RDMP in Balikpapan to secure energy supplies.",
        "content": "<p>Jakarta \u2014 International relations expert Iis Gindarsah argues that\nIndonesia needs to diversify payment mechanisms as well as energy and\nfood supply sources to strengthen economic resilience amid global\ngeopolitical dynamics. \u2018Fundamentally, we need a lot of diversification\nof payment mechanisms, diversification of energy commodity sources or\nfood sources,\u2019 Gindarsah said in Jakarta on Tuesday. He noted that while\nthe policy of increasing domestic production capacity is appropriate in\nthe long term, dependence on imported commodities remains an urgent\nchallenge that requires short-term steps to maintain supply. The\nresearch fellow at the Rajaratnam School of International Studies said\nthe main risk currently is the impact of Western economic sanctions on\nseveral countries, especially if Indonesia\u2019s trade transactions are\naffected by restrictions on Western financial systems. Therefore,\nIndonesia needs to prepare alternative payment mechanisms that do not\nrely on the financial systems of the European Union and the United\nStates. For transactions with particular partners, such as Russia,\nIndonesia can utilise bilateral payment schemes that have already been\nagreed. Diversification is also seen as important amid a strengthening\nUS dollar. Gindarsah cited the use of local currencies in bilateral\ntransactions with China, as well as the issuance of Panda Bond and Dim\nSum Bond, as efforts to reduce reliance on the US dollar. However, he\nreminded that the use of the US dollar remains difficult to avoid for\nsome transactions, particularly those involving the United States.\nEarlier, the Government of Indonesia said it has diversified energy\nsources to ensure fuel supplies remain secure amid global geopolitical\ndynamics, especially tensions in the Middle East. Energy and Mineral\nResources Minister Bahlil Lahadalia, in an online press conference\nmonitored from Jakarta on Tuesday (31\/3), emphasised that this step is\nintended to reduce dependence on a single region while maintaining\nnational energy resilience. \u2018From our total fuel needs, those from the\nMiddle East account for about 20 percent,\u2019 he said. According to Bahlil,\nthe government has anticipated potential supply disruptions by seeking\nalternative sources from other countries. \u2018When tensions in the Middle\nEast escalate, the government, under the President\u2019s instructions, seeks\nother supply sources to replace those from the Middle East. And\nAlhamdulillah, we have already obtained them,\u2019 he said. In addition to\ndiversifying imports, the government is also strengthening domestic\nproduction through refinery development; one project inaugurated is the\nRefinery Development Master Plan (RDMP) in Balikpapan, with production\ncapacity of 5.6 million kilolitres of petrol and around 4.5 million\nkilolitres of diesel.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/indonesia-needs-to-diversify-energy-supply-to-face-geopolitical-risks-1779546044",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}