Indonesian Political, Business & Finance News

Eddy Soeparno: Strong State Budget Not a Guarantee of Fulfilled Energy Supply

| Source: DETIK Translated from Indonesian | Energy
Eddy Soeparno: Strong State Budget Not a Guarantee of Fulfilled Energy Supply
Image: DETIK

Deputy Chairman of the MPR from the PAN faction, Eddy Soeparno, has responded to the Finance Minister’s statement that Indonesia is not in an energy emergency due to the strong support of the state budget. He appreciates the government’s performance in maintaining fiscal resilience but reminds everyone to remain vigilant against the potential energy crisis.

Eddy assesses that the strength of the state budget is indeed an important factor in facing global turbulence, including the impact of the conflict in the Middle East. However, this does not automatically guarantee national energy supply security.

“I appreciate the Finance Minister’s performance in maintaining our fiscal resilience so that the energy turbulence occurring due to the war in the Middle East has not pushed Indonesia into an energy emergency condition,” said Eddy in a written statement on Thursday (26/3/2026).

“Nevertheless, we need to always be vigilant that Indonesia’s current strong state budget is not a guarantee that the energy supply, which has so far been met through import routes, will always be fulfilled,” he continued.

According to Eddy, the Iran-Israel-US conflict is a global disruption whose impact could be equivalent to the crisis during the COVID-19 pandemic. He assesses that this situation could trigger limitations in energy supply in the global market.

“This means that even if we have sufficient funds to buy it, the producing countries may not be willing to sell the products in question,” he added.

He also highlighted the risk of competition between countries in obtaining energy supplies, especially for commodities like fuel oil, oil and gas, and LPG that still rely on imports.

“This is the risk we face at the moment. Even though Indonesia has a strong state budget, we may not necessarily be able to meet energy needs such as fuel oil, oil and gas, and LPG that have so far been imported because they are contested by many countries on one side and restricted in sales by oil-producing countries on the other,” he said.

Therefore, Eddy urges all stakeholders to increase vigilance and ensure the reliability of the national energy supply. He emphasises the importance of focusing on the sustainability of supplies, not just availability.

In addition, he also reminds of the importance of accelerating the energy transition as directed by President Prabowo, in order to strengthen national energy resilience amid global uncertainties.

“The current war in the Middle East is an alarm that Indonesia’s energy resilience is vulnerable. Therefore, we need to expedite the energy transition, strengthen electrification, and develop abundant national bio-energy sources. While our state budget is strong, this is the time to build strong energy resilience as well,” he concluded.

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