Golkar encourages energy collaboration between Indo-Pacific nations
Jakarta — The Golkar Party’s central executive is promoting strengthened energy collaboration between nations in the Indo-Pacific region through energy diplomacy conducted by the Minister of Energy and Mineral Resources, Bahlil Lahadalia, at Japan’s Indo-Pacific Forum.
“We fully support Minister Bahlil’s diplomacy efforts to strengthen inter-regional cooperation among Indo-Pacific nations because geographically, the Indo-Pacific region is relatively further from the direct impact of conflicts involving the United States, Israel and Iran,” said Abdul Rahman Farisi, Secretary for Economic Policy at the Golkar Party’s central executive, speaking in Jakarta on Tuesday.
Farisi, a former lecturer at the Faculty of Economics and Business at Hasanuddin University, views this energy diplomacy initiative as increasingly relevant amid rising global geopolitical tensions that could disrupt global energy supply stability.
He assessed that the blockade of the Strait of Hormuz and attacks on oil refineries in Iran, Israel and several Middle Eastern countries could potentially hamper global oil supplies. This situation could trigger supply shortages and drive global oil prices above USD 100 per barrel.
He noted that the global economy has not fully recovered since the pandemic, so new pressures from the energy sector could exacerbate the world’s economic situation.
Farisi views strengthened energy cooperation between Indo-Pacific nations as a strategic step to minimise negative impacts from potential energy supply shortages whilst maintaining global oil price stability.
He stressed that the Indo-Pacific region plays a strategic role in the global energy cooperation ecosystem. The region has significant potential ranging from exploration of energy resources, increasing energy industry capacity particularly in the oil and gas sector, to developing new and renewable energy.
According to Farisi, collaboration built through such forums also has the potential to strengthen the region’s energy supply chain whilst opening wider investment and technology transfer opportunities for Indonesia.
“The steps taken by Minister Bahlil are not only to mitigate risks from conflicts involving Iran, the United States and Israel, but also to enable Indo-Pacific nations to survive and obtain mutual benefits amidst global geopolitical tensions,” he said.