Hormuz Strait in Turmoil, Eddy Soeparno Urges Government to Take Action

Jakarta, CNBC Indonesia – Eddy Soeparno, Deputy Speaker of the MPR from the PAN faction, has warned of rising tensions in the Hormuz Strait amid the escalating confrontation among the United States, Iran and Israel. According to Eddy, the situation could have a significant impact on global energy supply stability, including in Indonesia, which still relies on imports of crude oil and petroleum products. The Hormuz Strait is one of the world’s most strategically important energy shipping lanes. When conflicts escalate and the risk of distribution disruption grows, international energy markets typically respond with higher prices. This, Eddy said, must be taken seriously by the government. He emphasized that Indonesia, as a major oil importer, is highly vulnerable to global price fluctuations. A rise in crude oil prices affects the state’s fiscal base and could also squeeze household purchasing power and raise production costs across sectors. ‘At present, our dependence on fossil energy from imported sources leaves fiscal space vulnerable during global crises. Therefore, on every opportunity I emphasise that energy security must be a strategic agenda parallel to national resilience,’ he stressed. The Doctor of Political Science from UI also stressed that efforts to achieve energy resilience dovetail with President Prabowo Subianto’s commitment to accelerate the development of renewable energy and to maximise domestic energy potential. ‘President Prabowo has emphasised the importance of accelerating renewable energy development and maximising domestic energy potential. In the context of the current global crisis, that policy direction is increasingly relevant,’ he said. According to Eddy, Indonesia has substantial potential in renewable energy sectors such as geothermal, solar, hydro and bioenergy that have not yet been optimally exploited. Accelerating investment and regulatory reform in this sector is the key to reducing dependence on oil imports. ‘Every time a conflict arises in the Middle East, we are haunted by concerns about oil prices. This should be a momentum to accelerate the energy transition. Energy resilience is part of national resilience,’ he asserted. He also urged the government to prepare short-term anticipatory steps to safeguard the stability of the APBN, including strengthening national energy reserves as a mitigation of spikes in global oil prices. ‘The government needs to ensure that global turmoil does not directly burden the people. Fiscal and energy policies must be synergised so that external pressures can be damped,’ he closed.