Global Oil Price Surge Threatens Supply, Government Urged to Accelerate Alternative Energy
The rise in global oil prices amid geopolitical uncertainties is sparking concerns about national energy resilience. The government is being urged to immediately boost the utilisation of biofuel (BBN) as a strategic step to reduce dependence on energy imports.
Professor of the Faculty of Engineering at UGM, Prof. Dr. Ir. Deendarlianto, S.T., highlighted Indonesia’s energy resilience vulnerability, which can only sustain for 20 to 22 days without new supplies. Yet, Indonesia’s oil needs reach 1.5 million barrels per day, while oil production only reaches 600,000 barrels per day.
He revealed that the geopolitical situation and the threat of prolonged drought due to El Niño will make it difficult for the government to meet domestic fuel (BBM) supply needs. This is also influenced by the closure of activities in the Strait of Hormuz, while Indonesia’s kerosene needs still rely on imports from the Middle East region by around 20-25 percent.
“If no new supplies enter within 22 days, it will pose a major risk to industrialisation, transportation, electricity, and potential social unrest,” he said on Saturday (4/4/2026).
Nevertheless, Deen appreciates the anticipatory steps the government is taking to address the current energy crisis through the use of renewable energy. For example, implementing the B50 policy, which is the mixing of biofuel (BBN) biodiesel into diesel to reduce diesel import needs. This policy has been established and will take effect from 1 July 2026.
According to him, some policies like implementing Work From Home (WFH) need to be studied more deeply. Although some things can already be done digitally, some fields require interaction such as science and technology.
“I think it’s a good idea, but it needs a deeper study and should not be generalised,” said Deen.
In addition, Deen also suggested other utilisations such as promoting ethanol, using biological sources like sorghum and cassava as petrol substitutes. Promoting the development of Dimethyl Ether (DME) as a substitute for Liquefied Petroleum Gas (LPG).
“When gas prices rise due to disrupted supply chains, renewable energy should be developed. This problem becomes a momentum for the revival of energy, the revival of university research in the energy field,” he stated.