Commission VI commends government steps to tackle disruptions to oil and gas supply

The Indonesian government has moved to mitigate potential disruptions to the national oil and gas supply triggered by the closure of the Strait of Hormuz as tensions in the Middle East heighten. Commission VI member Firnando Ganinduto said the escalation of geopolitical tensions between Iran and the United States threatens to close the Strait of Hormuz, a route that carries around 20 percent of global oil and LNG trade and is pivotal for energy stability. He noted the government’s decision to redirect part of crude oil imports from the Middle East to the United States as part of a supply diversification strategy. The lawmaker, representing Central Java, explained that the Strait of Hormuz handles about 20-25 percent of Indonesia’s crude oil imports, making the country vulnerable to distribution disruptions and price volatility that could directly affect the state budget (APBN). He added that the policy to shift some crude imports to the United States is important to safeguard national energy supply amid geopolitical uncertainty. He also pointed out that about 30 percent of Indonesia’s LPG imports still rely on the Middle East, necessitating alternative suppliers from other regions. While short-term mitigation is necessary, he argued for structural, long-term measures, noting that the government has ensured domestic energy supply is secure for the coming weeks. “Pertamina should strengthen its supply security strategy and broaden its energy trading network to reduce reliance on a single region,” he said. Ganinduto stressed that the current situation should act as a catalyst to accelerate domestic oil and gas production and to advance the transition to new renewable energy. “Diversification of imports is only a tactical solution; energy independence and resilience are long-term strategic priorities that will determine Indonesia’s economic stability going forward,” he concluded.