Airlangga Responds to JP Morgan Report on Energy Resilience

Coordinating Minister for Economic Affairs Airlangga Hartarto has responded to the latest Eye on the Market report published by JP Morgan Asset Management, titled Pandora’s Bog: The Global Energy Shock of 2026. Released on 21 March 2026, the report places Indonesia as the world’s second most resilient country against global energy shocks. According to Airlangga, these findings reinforce the government’s consistent policy direction on energy resilience amid geopolitical dynamics and fluctuations in global energy commodity prices. “This result is not merely an appreciation of the current situation, but a validation of the government’s long-term policy choices,” he stated in an official remark, quoted on Saturday, 25 April 2026. The JP Morgan Asset Management report analyses 52 countries representing about 82 per cent of global energy consumption using the total insulation factor, a composite measure aggregating four main domestic energy source components: gas production, coal production, nuclear power generation, and renewables as a percentage of national useful final energy. Indonesia records an insulation factor of 77 per cent, just below South Africa (79 per cent) and above China (76 per cent) and the United States (70 per cent). Indonesia’s energy resilience is primarily supported by significant contributions from domestic coal production, meeting about 48 per cent of national final energy consumption, domestic natural gas at 22 per cent, and renewables at 7 per cent. In its report, JP Morgan Asset Management explicitly groups Indonesia with China, India, South Africa, Vietnam, and the Philippines as countries deriving substantial benefits from domestic coal production during the energy shock period. Indonesia is also assessed to have very low direct exposure to global energy distribution routes currently in the spotlight. Oil and gas imports through the Strait of Hormuz contribute only about 1 per cent of the national total primary energy consumption. This figure is far below East Asian countries such as South Korea (33 per cent), Taiwan and Thailand (27 per cent), and Singapore (26 per cent). In contrast, the report highlights advanced economies like Italy, Japan, South Korea, Singapore, and the Netherlands as the most vulnerable due to their high dependence on imported oil and gas. Airlangga noted that amid global energy price volatility, this position provides more controlled fiscal space for the 2026 state budget and helps protect people’s purchasing power and the continuity of business activities. He stressed that this achievement does not make Indonesia complacent about remaining risks. The government, he said, continues to strengthen several policy directions, including optimising domestic upstream oil and gas production to reduce the oil and gas trade deficit and bolster non-tax state revenue; accelerating the energy transition through the development of new renewable energy (EBT) in line with the National Energy Plan (RUKN) and the Electricity Supply Business Plan (RUPTL). Furthermore, expanding the adoption of battery-based electric motor vehicles (KBLBB) as a structural strategy to reduce dependence on oil; and diversifying energy supply sources and logistics routes to strengthen resilience against geopolitical risks.