JAKARTA \u2013 Muhammad Kholid Syeirazi, a member of the National Energy\nCouncil (DEN), assesses that the global geopolitical dynamics in the\nMiddle East have exerted significant pressure on the national energy\nsystem. The conflict, which is now beginning to subside, has caused a\nsurge in world oil prices to around USD 110 per barrel, an increase of\nabout 60 per cent from the start-of-year position.<\/p>\n
\u201cThis situation demonstrates that threats to our energy resilience do\nnot entirely originate domestically, but are strongly influenced by\nuncontrollable global factors, such as geopolitical conflicts and supply\nchain disruptions,\u201d Kholid stated during the Discussion Forum\n\u201cMaintaining Energy Resilience Amid Global Oil Price Volatility\u201d\norganised by the Energy & Mining Editor Society (E2S) in Jakarta on\nThursday (9\/4\/2026).<\/p>\n
In addition to the price surge, Kholid said the disruptions in the\nStrait of Hormuz, which serves as a route for about 20 per cent of the\nworld\u2019s oil supply, have impacted Indonesia. He noted that nearly\none-third of LPG imports and about one-fifth of crude oil imports pass\nthrough that route.<\/p>\n
As a mitigation step, the government has begun promoting\ndiversification of energy import sources by expanding supplies from\ncountries outside the conflict-ridden Middle East region. Kholid deems\nthis effort important for reducing supply disruption risks due to\ngeopolitical tensions and ensuring the sustainability of national energy\ndistribution.<\/p>\n
\u201cOf course, we are pushing for a legal framework for that, so that\nwhen Pertamina buys crude oil from Australia, for example, it does not\nbecome a problem later on,\u201d he said.<\/p>\n
On the other hand, Kholid sees domestic conditions revealing\nstructural vulnerabilities. National oil production in 2025 was recorded\nat around 220.9 million barrels, while imports reached 117.8 million\nbarrels. Reliance on LPG imports is even higher, with import volumes\nreaching 7.47 million tonnes.<\/p>\n
Kholid calculates that every USD 1 per barrel increase in oil prices\ncould potentially raise the state budget burden by up to Rp10.3\ntrillion, particularly for energy subsidies and compensation. If oil\nprices rise by USD 10 per barrel, the additional subsidy burden could\nreach Rp79 trillion.<\/p>\n
Nevertheless, indicators of national energy resilience are still\nassessed by Kholid as showing a positive trend. Indonesia\u2019s Energy\nResilience Index (IKE) in 2025 was recorded at 7.13, falling into the\n\u2018resilient\u2019 category. However, to maintain and improve this achievement,\nadaptive strategic steps are needed in response to external\npressures.<\/p>\n
In this context, Kholid opines that energy state-owned enterprises\nplay a crucial role as the frontline in responding to crises. From\nensuring supply availability, maintaining distribution stability, to\nacting as a price buffer amid global volatility.<\/p>\n
For this reason, there needs to be a strengthening of the role of\nenergy SOEs to safeguard the stability of domestic energy supply and\nprices.<\/p>\n
\u201cWe cannot control world oil prices or global conflicts, but we can\nstrengthen our domestic foundations. This is where the role of energy\nSOEs becomes highly strategic in cushioning the impact of crises,\u201d\nKholid stated.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/role-of-state-owned-energy-enterprises-needs-strengthening-amid-global-crisis-1776153063", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }