Airlangga says Indonesia has secured energy supplies from outside the Middle East

Jakarta — Coordinating Minister for Economic Affairs Airlangga Hartarto said Indonesia has secured energy supplies from sources outside the Middle East as a mitigation against the impact of the United States–Iran conflict. He cited several energy supply alternatives arising from trade cooperation with the United States and Pertamina’s access to supplies from Venezuela. ‘From an energy perspective, as it happens we have signed the Agreement on Reciprocal Trade (ART); indeed, our energy supply relationships include an MoU with the United States, and Pertamina has access to supplies from Venezuela,’ Airlangga said at the 2026 National Semiconductors Talent Briefing in Jakarta on Thursday. The government is also monitoring global developments that are difficult to predict. Airlangga admitted that Indonesia is currently better prepared to face uncertainty by learning from the surge in energy prices caused by the Russia–Ukraine conflict. He said the situation can be viewed from two sides. On the one hand, the government needs to maintain energy subsidies so as not to burden the public. On the other hand, higher commodity prices can also boost government revenue. ‘On the subsidies front, we will maintain them; the government has already prepared that subsidies will continue. The Budget (APBN) acts as a buffer to dampen price fluctuations. But on the other hand, there will of course be additional revenue if commodity prices rise,’ he said. Nevertheless, he said it is too early to estimate the full impact of the Middle East conflict dynamics on the economy. ‘We are, of course, watching the situation; it is still too early to call,’ he added. Furthermore, Airlangga noted that the uncertain global environment is prompting investors to curb expansion, making resilience a key factor for the economy. ‘This is what we must push, because the new world is causing all investments to reassess and hold back; resilience, including in the economy, is paramount,’ he said. Under the reciprocal trade agreement between Indonesia and the United States, Indonesia commits to buying energy commodities from the United States worth around USD 15 billion. The figure comprises USD 3.5 billion of liquefied petroleum gas (LPG), USD 4.5 billion of crude oil, and USD 7 billion of petrol refined at refineries.