Indonesian Political, Business & Finance News

DPR Calls on Pertamina to Mitigate the Impact of the US–Israel–Iran War on Oil Supplies

| Source: VIVA Translated from Indonesian | Energy
DPR Calls on Pertamina to Mitigate the Impact of the US–Israel–Iran War on Oil Supplies
Image: VIVA

Dewi Yustisiana, a member of Commission XII of the Indonesian House of Representatives from the Golkar faction, urged PT Pertamina (Persero) to undertake comprehensive mitigation measures to anticipate the impact of the escalation of conflict among Iran, the United States (US), and Israel on the stability of national energy supplies, particularly crude oil and Liquefied Petroleum Gas (LPG).

According to Dewi, geopolitical tensions in the Middle East region could disrupt global energy supply chains, given that the region is one of the world’s main oil-producing hubs and a strategic distribution route.

She assessed that disruptions to production or shipping could trigger volatility in crude oil and LPG prices, while Indonesia remains dependent on imports to meet domestic needs.

“Indonesia must ensure anticipatory steps are taken from an early stage so that domestic supply remains secure and prices do not swing, especially for the needs of the public,” Dewi said in a written statement on Wednesday, 4 March 2026.

She said the mechanism for purchasing crude oil by Pertamina, including from Saudi Aramco, is conducted through a business-to-business (B2B) scheme. Under this scheme, contracts are commercial between corporations, making risk management, supply flexibility, and scheduling of shipments crucial aspects in facing geopolitical dynamics.

Dewi also urged Pertamina to strengthen diversification of supply sources, maintain adequate operational reserves of oil and LPG, and ensure distributions run smoothly, especially for LPG 3 kg which is highly sensitive to fluctuations in international prices.

She stressed that Commission XII of the DPR will continue to exercise its oversight function to ensure readiness and swift response in safeguarding national energy resilience.

“This global situation serves as a reminder that energy resilience must be strengthened through adaptive governance, diversification of supply, and increased domestic capacity,” Dewi concluded.

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