Indonesian Political, Business & Finance News

5 Strategies from Bahlil's Subordinates to Secure Oil and Gas Supplies Amid Middle East Conflict

| | Source: KOMPAS Translated from Indonesian | Energy
5 Strategies from Bahlil's Subordinates to Secure Oil and Gas Supplies Amid Middle East Conflict
Image: KOMPAS

JAKARTA, KOMPAS.com - The Ministry of Energy and Mineral Resources (ESDM) has assured that national oil and gas (migas) supplies are in a safe condition amid disruptions to global energy distribution due to the Middle East conflict.

Secretary of the Directorate General of Oil and Gas at the Ministry of ESDM, Muhammad Rizwi Jilanisaf Hisjam, stated that the government has several strategies to maintain domestic energy resilience, ranging from regulating consumption to seeking new oil and gas sources outside the Middle East.

“With all the strategic mitigation steps we have taken, we can affirm that national supplies of BBM (fuel oil) and LPG (liquefied petroleum gas) are currently in a safe condition,” he said during a meeting with Commission VII of the DPR RI in Jakarta on Wednesday (8/4/2026).

At least five steps have been prepared.

First, the government is regulating the consumption of subsidised BBM and LPG to be more reasonable and prudent. This policy has been outlined in an official letter issued by the Directorate General of Oil and Gas together with BPH Migas as the downstream oil and gas sector regulator.

Second, the government is diverting energy import sources. Previously, supplies largely came from the Middle East, which is now facing distribution constraints due to the closure of the Strait of Hormuz; imports are now being redirected to other countries such as America, Africa, Asia, and Southeast Asia.

“We are diverting import sources that previously came from Middle Eastern countries affected by issues in the Strait of Hormuz to other countries,” said Rizwi.

Third, the government is enhancing the performance of domestic refineries, one of which involves adjusting production under the Refinery Development Master Plan (RDMP) in Balikpapan.

Fourth, the government is actively seeking additional LPG supplies, both through imports and domestic production. LPG previously allocated to the industrial sector is now being redirected to meet the needs for 3-kilogram (kg) subsidised LPG or elpiji.

“We have instructed private LPG refineries to prioritise offers to Pertamina Patra Niaga, which previously sold their production to industry, but we are giving priority for their production to be offered first to Pertamina Patra Niaga so it can be used for public needs,” said Rizwi.

This situation reflects ongoing supply-side pressures, particularly due to the conflict sparking market concerns over global oil distribution. Such uncertainty is leading market players to anticipate short-term price surges.

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