Indonesia and Australia strengthen energy security amid crisis

The Australian Ambassador to Indonesia, Rod Brazier, has welcomed the strengthening of energy supply cooperation between Indonesia and Australia amidst the impact of the Middle East crisis on global supply chains. According to Brazier, the relationship between the two nations demonstrates the importance of strategic partnerships in maintaining energy security amidst global uncertainty.

“As disruptions in the Middle East affect global supply chains, Indonesia and Australia are supporting each other through increased Indonesian urea exports to Australia and increased Australian LPG supplies to Indonesia,” Brazier stated in a press release from the Australian Embassy in Jakarta on Monday.

The increase in Liquefied Petroleum Gas (LPG) supplies from Australia to Indonesia has occurred over recent months to help cover supply shortages caused by disrupted energy distribution from the Middle East. This situation is linked to the closure of the Strait of Hormuz, which has impacted global energy supply chains. The closure of this strategic shipping route has also disrupted one of the world’s primary sources of LPG supply, which has long served various nations.

Throughout 2026, the volume of Australian LPG cargoes shipped to Indonesia is expected to increase at least threefold compared to 2025. According to the Australian Embassy’s statement, these additional shipments help Indonesia meet its LPG requirements during a very crucial period.

On the other hand, the Head of the Centre for Asia Pacific and Africa Policy Strategy at the Indonesian Ministry of Foreign Affairs, Vahd Nabyl Achmad Mulachela, assessed that this cooperation reflects the strong bilateral relationship between the two countries. “This shows how both nations can work together to strengthen energy security, increase supply chain resilience, and promote shared economic interests,” he said.

The additional LPG supplies originate from the Ichthys Project, operated by INPEX and located in Western Australia and the Northern Territory. This energy project also reflects the close collaboration between Indonesia and Australia, as key infrastructure for the project was manufactured in Batam, demonstrating the strong link between Australia’s offshore resource sector and Indonesia’s manufacturing industry.