Government Expands Energy Supply Sources Amid Distribution Disruptions
Jakarta (ANTARA) - Hendra Gunawan, Director of Oil and Gas Programme Development at the Ministry of Energy and Mineral Resources (ESDM), stated that amid potential disruptions to global energy distribution routes, particularly those passing through the Strait of Hormuz, the government is expanding energy supply sources from various regions around the world.
“Besides energy sources passing through the Strait of Hormuz, we are expanding to other regions, including from the United States, Africa, East Asia, and the Middle East,” Hendra said in his statement in Jakarta on Friday.
In addition to diversifying imports, according to Hendra, the government is also optimising domestic production to reduce reliance on external supplies.
This optimisation includes redirecting a portion of crude oil production from contractors under cooperation contracts (KKKS) for domestic needs.
“For crude oil or petroleum, the optimisation of KKKs’ output is carried out for domestic interests. The Directorate General of Oil and Gas is examining all KKKs to divert exports needed domestically, as well as optimising domestic resources for BBM and LPG production,” Hendra said during a discussion titled “Maintaining Energy Resilience Amid Global Oil Price Volatility,” organised by E2S.
Meanwhile, Komaidi Notonegoro, an energy observer and Executive Director of the ReforMiner Institute, responded to the government’s decision to maintain fuel oil (BBM) prices despite the surge in global crude oil prices.
According to Komaidi, the policy can be understood to safeguard public welfare, but its impact on national energy resilience must be watched closely.
He stated that assuming the Indonesia Crude Price (ICP) in the 2026 State Revenue and Expenditure Budget (APBN) is set at 70 US dollars per barrel compared to the current average oil price, there is a price disparity.
According to Komaidi’s calculations, at least for each BBM product, there is a selling price difference of Rp5,000-Rp9,000 per litre compared to its economic value.
Komaidi continued that based on the latest data, Pertamina’s annual BBM sales are around 72 million-75 million kilolitres, or approximately 200,000 kilolitres per day.
If Pertamina’s BBM sales volume is multiplied by Rp5,000-Rp9,000, an additional fund of around Rp1.5 trillion-Rp2 trillion per day is needed, or Rp60 trillion per month.
“How many months can they (Pertamina) sustain with the existing cash flow? Moreover, they may also have some bonds coming due, so they must pay principal instalments and interest on their debt,” he said.
Another speaker, Muhammad Kholid Syeirazi, a member of the National Energy Council (DEN), said that in the midst of this abnormal turbulent situation, even if there is money but no crude oil products, it means nothing.
“Especially now the situation is called a seller’s market. So the market is dictated by the sellers,” Kholid explained.
According to him, Pertamina is currently in a difficult position. On one hand, the goods needed are now in high demand. Second, from a regulatory perspective, the ICP price in the 2026 APBN is set at 70 US dollars per barrel. However, in the global market, the price is already above 100 US dollars per barrel.