Indonesian Political, Business & Finance News

Government Asked to Anticipate Geopolitical Impacts on Fuel Prices

| Source: TEMPO_ID Translated from Indonesian | Regulation

Commission VI of the Indonesian House of Representatives has called on the government to prepare anticipatory measures against the impact of global geopolitical dynamics on Indonesia’s fuel supply and prices. This was communicated by Deputy Chair of Commission VI Anggia Erma Rini during a working visit to Semarang, Central Java, on Friday, 6 March 2026.

Anggia assessed that geopolitical conflicts affecting global energy distribution routes, including in the Strait of Hormuz region, could potentially impact energy supply stability in various countries, including Indonesia. She stressed that potential disruptions to global energy distribution must be anticipated seriously to prevent adverse effects on domestic fuel availability.

“The threat to our fuel supply is indeed on the horizon. Therefore, the government must prepare an anticipatory strategy with various simulations and scenarios,” she stated.

The PKB faction politician emphasised that the government needs to develop mitigation measures in case of disruptions to global energy supply chains, including alternative scenarios to ensure national energy supply remains secure. “There must be thorough analysis and simulation. If there are disruptions to supply, the government should already have alternative scenarios to address them,” she said.

Commission VI member Firnando Hadityo Ganinduto addressed the frequent claim that Indonesia’s fuel reserves last only around 20-30 days, arguing this figure requires proper public understanding. He explained that this figure refers to Indonesia’s fuel storage capacity, not the total domestic energy reserves available.

“The 20-day reserve does not mean we only have that amount of fuel, but rather represents our storage capacity,” he explained.

Firnando added that the government is working to increase the capacity of national energy reserves to accommodate larger stockpiles. The government has also diversified energy import sources, no longer relying solely on the Middle East region.

“Energy imports are also sourced from various countries such as the United States and others, ensuring that supply can be maintained,” said the Golkar faction politician.

Nevertheless, Firnando cautioned that potential rises in global oil prices due to geopolitical dynamics still require preparation, as this could impact the state budget, particularly regarding energy subsidies. “Global oil price increases will certainly affect the state budget due to energy subsidies. Therefore, anticipatory strategies must be carefully prepared,” he stated.

He also urged the public not to panic about fuel shortage concerns, reaffirming that the government and state-owned energy enterprises continue to monitor national energy supply conditions. “I urge the public not to engage in panic buying. The government and state energy enterprises will certainly prepare strategies to prevent fuel shortages from occurring,” Firnando said.

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