Economist Says Indonesia's Oil Dependence on Middle East is Only 20 Percent, Safer than Neighbouring Countries
JAKARTA - The Executive Director of the Center of Reform on Economics (CORE), Mohammad Faisal, assesses that Indonesia’s energy resilience is relatively better compared to several countries in the region, particularly in terms of dependence on oil supplies from the Middle East.
According to Faisal, Indonesia has a much lower level of dependence compared to peer countries such as the Philippines and Malaysia.
“We need to prepare to face conditions where the pressure will still be felt in the future. But, looking at our dependence on oil, we are actually far better off than our peers,” Faisal said at the Central Banking Forum 2026 in Jakarta on Monday (13/4/2026), quoted from Antara.
The low dependence, Faisal continued, is inseparable from the government’s efforts to diversify energy import sources, including exploring supplies from countries in Africa.
With this condition, Faisal believes Indonesia has better resilience in facing potential global pressures in the energy sector, especially if there are supply disruptions from the Middle East region.
“The Philippines, with such conditions, understandably announced work from home (WFH) on a larger scale than us. Because their dependence is very high,” he said.
Nevertheless, he reminded that global pressures still need to be anticipated in the future. The government is also deemed correct in maintaining domestic stability, one of which is through policies to keep subsidised fuel oil (BBM) prices stable.
“Because based on history, if subsidised BBM prices rise, the impact is quite significant, both directly and indirectly, on food prices,” said Faisal.
In addition to civil servants, the government also urged the private sector to implement WFH. This was stipulated through a circular from the Minister of Manpower, while still considering the characteristics and needs of each business sector.
The WFH policy aims to save the State Revenue and Expenditure Budget (APBN) with potential savings of Rp 6.2 trillion from fuel oil (BBM) compensation. Meanwhile, the total potential savings from public BBM consumption is estimated to reach Rp 59 trillion.