Indonesian Political, Business & Finance News

Indonesia Has Lost 25% of Fuel Import Sources

| Source: CNBC Translated from Indonesian | Energy
Indonesia Has Lost 25% of Fuel Import Sources
Image: CNBC

The Ministry of Energy and Mineral Resources (ESDM) has disclosed that Indonesia has lost approximately 2cap5% of its fuel (BBM) import sources due to the escalation of conflict in the Middle East. The Director General of Oil and Gas at the Ministry of ESDM, Laode Sulaeman, stated that these supply dynamics have forced the government to directly alter its national energy procurement strategy.

Speaking at the 2026 Regional Inflation Control Coordination Meeting hosted by the Ministry of Home Affairs on Monday (5/10/2026), Laode noted, “Secondly, since the conflict in the Middle East began, we have lost 25% of our import sources.”

To secure domestic supplies, Laode explained that the government is currently transitioning to a ‘hunting’ mechanism, seeking supplies directly from countries that possess surplus stocks. This step was taken because the conventional auction mechanism previously utilised by PT Pertamina (Persero) has become relatively unreliable due to global supply uncertainties.

“We are conducting hunting to ensure that national stocks remain available, and this hunting no longer follows the previous procurement mechanism. Previously, Pertamina would conduct auctions, but now there are relatively no participants in those auctions. Therefore, we must seek out countries that have excess stocks,” said Laode.

Despite facing supply challenges and the potential for higher purchase prices, the government has ensured that national fuel stock resilience remains secure, maintained at around 18-20 days. Simultaneously, the prices of subsidised diesel and petrol are being held steady to prevent triggering inflation.

“There are two main points: first, we are maintaining the subsidies for diesel and petrol; second, the stock resilience of 18-20 days is being maintained,” he emphasised.

The Minister of Energy and Mineral Resources, Bahlil Lahadalia, previously revealed that Indonesia’s crude oil imports from the Middle East region only account for 25% of total national requirements. Bahlil explained that Indonesia’s crude oil imports originate from various countries, including Africa, Angola, the Middle East, the United States, Brazil, Australia, and several other nations.

“How much do we import from the Middle East for crude? It is a total of 20 to 25 per cent of our total national needs,” Bahlil stated during a podcast on Wednesday (11/3/2026).

Consequently, Bahlil asserted that the public should not worry about the condition of the national fuel supply despite oil distribution disruptions in the Middle East region. Furthermore, Indonesia does not import finished fuels, such as petrol, from the Middle East, but rather crude oil, which is then processed in domestic refineries.

Bahlil revealed that the government plans to divert a portion of crude oil imports to countries such as the United States, Angola, several African nations, and Latin America. “We are shifting those sources to America, Angola, and several countries in Africa and Latin America. Even if the Strait of Hormuz were to be closed, we have already diverted that 20 to 25 per cent to other countries,” he concluded.

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