Indonesian Political, Business & Finance News

DEN's First Session in 2026 Deemed Timely and Anticipatory of Middle East Conflict Impacts

| Source: ANTARA_ID Translated from Indonesian | Energy
DEN's First Session in 2026 Deemed Timely and Anticipatory of Middle East Conflict Impacts
Image: ANTARA_ID

The outcomes of the DEN’s first session of 2026, in addressing the escalation of the conflict in the Middle East and its impact on the closure of the Strait of Hormuz and the global oil logistics chain, were deemed timely and anticipatory.

Abdul Rahman Farisi, Secretary of Economic Policy Affairs in the Golkar Party’s Central Executive Board, said in Jakarta on Wednesday that several scenarios had been prepared, including risk mitigation measures to keep national energy supply secure.

He noted that with potential disruptions of around 20 percent of global oil supply, or about 20.1 million barrels per day, due to the Strait of Hormuz closure, the government needed to move quickly and with measurable steps.

Additionally, President Prabowo Subianto’s directive to the Ministry of Energy and Mineral Resources to ensure there is no domestic energy shortage demonstrates the state’s strong commitment to maintaining national stability amid global uncertainty.

To this end, the government prepared steps to redirect part of crude oil imports to safer supply routes, including increasing imports from the United States.

Meanwhile, for fuel imports, supply was relatively secure as most come from countries outside the conflict area.

Furthermore, Indonesia’s national LPG requirement of 7.3–7.8 million tonnes per year, still met via imports, will be progressively diversified, including from the United States, as part of strengthening energy resilience.

“Diversification of energy is not only about replacing suppliers, but also maximising the potential of all energy sources available across Indonesia,” he stressed.

He said one area DEN should focus on is optimising hydroelectric power plants that are not fully utilised. Where plants have not yet reached full utilisation, preparations should be made promptly.

“In essence, all efforts aimed at national energy resilience should be optimised as part of anticipation measures,” he said.

“Energy resilience is the foundation of economic stability. If supplies are safe and controlled, inflation can be contained and purchasing power protected,” he added.

He stated that the DEN Members’ Session 1 decisions and recommendations must be promptly followed up by the relevant ministries and agencies as operational guidelines to maintain the stability of national energy supply.

The DEN Session 1, chaired by the Minister of Energy and Mineral Resources in his role as DEN Secretary, Bahlil Lahadalia, in response to the escalation of the Middle East conflict affecting the Strait of Hormuz and global oil logistics, was held at the Office of the Ministry of Energy and Mineral Resources on Tuesday (3/3).

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