Bahlil Reports Strait of Hormuz Developments to Prabowo, Prepares Alternative Oil Supply
Indonesia’s Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has reported developments in the Strait of Hormuz situation to President Prabowo Subianto. The geopolitical conditions in the region have drawn government attention due to their potential impact on global energy supply, including for Indonesia.
“That is one of the matters we have discussed, namely that there must be alternatives for what we will use when the Strait of Hormuz remains in this condition,” said Bahlil following a limited meeting at the Presidential Palace on Thursday (12 March).
According to him, the government is preparing anticipatory measures by seeking alternative sources for crude oil imports other than the Middle East region. Indonesia plans to redirect a portion of its crude oil imports from the Middle East to several other countries.
“Several days ago I already reported that we will convert our crude oil sources from the Middle East to America and several other countries, such as Nigeria, then Brazil, Australia, and some other countries,” he explained.
Regarding the potential for price increases or longer delivery times due to import route changes, Bahlil stated that crude oil prices are fluctuative and will follow the Indonesian Crude Price (ICP).
“Prices are fluctuative. We will follow the ICP price. What is clear is that we will seek the best alternatives for our nation,” he said.
However, Bahlil acknowledged that he has not yet discussed the matter concerning Iran’s demand that the United States ambassador be expelled if ships wish to transit through the Strait of Hormuz. He stated that this issue was not on the meeting agenda with the President.
“We did not reach a discussion on that matter,” he said.
National road resilience has already reached 93.5 per cent. Iraq has halted all operations at its oil ports following tanker attacks in the Arab Gulf region. The incident has increased tensions in the Strait of Hormuz involving Iran. A series of attacks have struck tankers in the Strait of Hormuz, with one crew member killed, Iraqi oil port operations halted, and the IRGC claiming involvement. Thailand’s government has summoned the Iranian ambassador following the burning of Thai bulk carrier Mayuree Naree after being struck by a projectile, with three crew members reportedly trapped in the engine room. Iranian drone and missile strikes have struck various Gulf nations, with global oil prices approaching US$100 per barrel amid chaos in global energy corridors. The United States has warned Iranian civilians to stay away from ports near the Strait of Hormuz amid plans for further attacks.
The inaugural meeting of the EBETKE Task Force was previously held at the ESDM Ministry, involving eight ministries and PT PLN. President Prabowo Subianto has emphasised that the programme represents a direct government decision that must be promptly implemented. President Prabowo Subianto has reminded the management team of Danantara Indonesia not to become complacent with performance achievements in the agency’s first year of operation, noting that management theory itself suggests no system can manage such a large number of entities under one control.