Airlangga States Iran Conflict Could Disrupt Indonesia's Oil Supply; Here Are Mitigation Steps

Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that the government is closely monitoring geopolitical developments in Iran, particularly regarding blockades at the Strait of Hormuz and the Red Sea that are affecting global logistics distribution routes and oil supplies.

Airlangga believes these disruptions will impact global oil supplies and prices, with knock-on effects for countries worldwide, including Indonesia. “In the case of an Iran conflict, oil supply disruptions are certain. The Strait of Hormuz is affected, and so is the Red Sea,” Airlangga said at the Economic Coordination Ministry in Jakarta on Monday, 2 March 2026.

The government has developed several mitigation options to counter direct impacts on Indonesia’s oil and fuel supplies. Airlangga noted that Indonesian oil supplies do not rely solely on the Middle East, as the country also sources from the United States. Pertamina, Indonesia’s state oil company, has already signed cooperation agreements with major American oil and gas firms including Chevron and ExxonMobil.

Airlangga added that options to source energy from other non-Middle Eastern countries remain available for Indonesia. This could become a key option if geopolitical escalation in the Middle East persists over an extended period. “The government already has memoranda of understanding to secure supplies from non-Middle Eastern countries. For example, Pertamina recently signed an MoU with the United States,” he said.