Indonesian Political, Business & Finance News

Hormuz Strait Turmoil: Redirecting Oil Imports to the United States as an Alternative

| | Source: KOMPAS Translated from Indonesian | Energy

The geopolitical tensions in the Middle East, which are triggering turmoil in the Hormuz Strait, are prompting discussions about alternative energy supplies for Indonesia. One emerging step is to shift a portion of crude oil imports from the region to the United States to maintain stability of national energy supply. The Hormuz Strait is a strategic global energy route through which around 20 percent of global oil and LNG trade passes. Disruptions in this region could trigger energy price spikes and increase pressure on energy-importing countries like Indonesia.

A member of the Indonesian House of Representatives, Commission VI, Firnando Ganinduto, said the situation requires a strategic response to keep national energy supply secure amid global geopolitical uncertainty.

“About 20–25 percent of Indonesia’s crude oil imports originate from the Middle East and pass through the Hormuz Strait,” Firnando said in a press statement on Wednesday, 4 March 2026.

“This situation makes Indonesia vulnerable to distribution disruptions and fluctuations in global prices that could directly affect the state budget (APBN).”

He said the policy is important to ensure the certainty of national energy supply amid rising geopolitical uncertainty.

In addition to crude oil, Firnando also highlighted Indonesia’s heavy reliance on Middle Eastern imports of LPG.

“About 30 percent of Indonesia’s LPG imports, he said, still depend on the region, so it is necessary to seek alternative suppliers from other regions to strengthen national energy resilience.”

Firnando also urged PT Pertamina (Persero) to strengthen energy supply security strategies while expanding the energy trade network with various partner countries.

He said diversification of imports is a tactical step to mitigate short-term risks. But in the long term, strengthening domestic oil and gas production and accelerating the transition to new and renewable energy remains necessary to build national energy independence.

Minister of Energy and Mineral Resources Bahlil Lahadalia said stock levels of fuel oil (BBM), crude oil, and LPG are currently above the national minimum standard.

“Especially for the Idulfitri holiday preparations, our stock of BBM, crude oil, and LPG averages above the national minimum standard,” said Bahlil.

“Our minimum standard is 21 days. All of this is above 21 days.”

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