Energy Self-Sufficiency Deemed Key to Tackling Impacts of US-Israel-Iran Conflict

An economist from Mulawarman University, Rizky Yudaruddin, has emphasised the importance of preparedness and efforts to achieve energy self-sufficiency for Indonesia amid the escalating geopolitical conflicts globally.

“The conflict between the United States, Israel, and Iran concerning uranium enrichment creates market uncertainty and will have cascading impacts on global geopolitics,” said Rizky in Samarinda on Sunday (1 March).

The academic, who appears on Stanford University’s list of the two per cent most influential scientists globally, noted that deteriorating escalation has the potential to disrupt international trade routes. Disruptions would particularly affect the Red Sea region, which has served as a lifeline for 70 per cent of global trade.

“This strategic waterway is crucial for ensuring the smooth distribution of energy commodity supplies to various parts of the world,” said the academic, who has previously researched the impact of war and geopolitical conflicts on global investor behaviour.

Rizky further stated that disruptions to this logistics distribution route would inevitably strike the economies of many nations due to supply chain disruptions. “These conditions would certainly trigger significant crude oil price increases on the international market,” he said.

Although some investors may profit from rising share prices, the overall stability of the energy sector is affected. According to him, current global crude oil price increases directly impact Indonesia’s economic stability.

“All industrial sectors in Indonesia will bear a heavy burden due to the nation’s high dependence on foreign energy supplies,” said Rizky.

Therefore, he advised the Indonesian government to respond swiftly to the situation by taking strategic and concrete steps. The primary measure that must be accelerated is maximising domestic industrial potential to achieve energy self-sufficiency targets.

The achievement of self-sufficiency, he noted, is crucial and urgent to reduce the nation’s dependence on foreign energy supplies. Alongside securing conventional energy, accelerating the development of green or renewable energy must also be a key government focus.

“The geopolitical and military tensions in the Middle East are predicted to persist for a considerable period,” he said.

Recognising this, Rizky observed that many nations are now competing to achieve energy independence for their national interests.

“Energy preparedness becomes the key to ensuring domestic economic activity remains resilient amid global market turbulence,” said Rizky.