Indonesia remains profitable on US crude despite rising oil prices
Brent crude traded on ICE rose to US$83 a barrel, compared with an average of US$64 in January 2026, highlighting a sharp rally in global oil markets.
Speaking to reporters after an iftar gathering at the Energy and Mineral Resources Ministry in Jakarta on Wednesday evening, Lahadalia said crude purchases from US suppliers would follow negotiations to secure favorable terms.
Such talks ensure Indonesia can still benefit from the transactions even as international oil prices climb amid heightened geopolitical tensions.
According to Lahadalia, state energy company Pertamina has extensive experience negotiating crude contracts and is capable of securing competitive prices in global markets.
The company recently began shifting a portion of Indonesia’s crude imports away from the Middle East toward the United States as part of an effort to diversify supply sources.
This strategy is expected to strengthen Indonesia’s domestic crude supply security and reduce reliance on a single region.
For refined fuels, Indonesia continues to rely heavily on imports of gasoline and diesel from Singapore, one of Asia’s largest refining and oil trading hubs.
Lahadalia explained that Singapore sources crude from various countries, allowing it to maintain stable fuel exports to Indonesia even if Middle Eastern shipments face disruption.
Crude supplies can be sourced from diverse producers, including Angola in Africa, Brazil in South America, Malaysia in Southeast Asia, and the United States. This diversification highlights that the global oil supply is not solely dependent on Middle Eastern producers, he said.
Indonesia’s energy security has come under scrutiny as the escalating conflict raises concerns about supply disruptions.
On Feb. 28, US and Israeli forces launched coordinated strikes on several Iranian targets, including locations in Tehran, damaging infrastructure and reportedly causing civilian casualties.
US President Donald Trump said Sunday that Iran’s Supreme Leader Ali Khamenei was killed in the joint attack, a report later confirmed by Iranian state television.
Iranian media also reported that the Strait of Hormuz has effectively been closed following the attacks, although no formal blockade has been announced.
The waterway remains one of the world’s most critical energy chokepoints, handling roughly one-fifth of global oil trade and large volumes of liquefied natural gas.
Approximately 20 percent of global daily oil consumption, or nearly 20 million barrels, passes through the corridor, meaning any disruption could significantly impact international energy markets.
Related news: Indonesia seeks release of two Pertamina vessels in Hormuz Strait
Related news: Indonesia starts US crude imports amid Middle East tensions
Translator: Putu IS, Rahmad Nasution