Indonesia Safe from Global Energy Crisis: DEN's Strategies
The latest report from The Economist places Indonesia among the developing countries most insulated from the impacts of the global energy crisis due to the escalation of conflict between Iran and Israel-United States. In response, DEN member Satya Widya Yudha assessed this achievement as concrete proof of the government’s success in safeguarding national energy stability amid highly dynamic geopolitical pressures.
The report, titled ‘Which country is the biggest loser from the energy shock’, categorises Indonesia in the group of countries with low exposure risk but strong resilience buffers. This position is crucial given that the Middle East conflict could disrupt global oil distribution routes, particularly the Strait of Hormuz, which handles around 20% of the world’s daily oil supply.
Satya Widya Yudha affirmed that the positive assessment from The Economist reflects the effectiveness of the government’s response to the global crude oil trade situation, especially regarding threats of blockade in the Strait of Hormuz.
“This is a form of the government’s success in responding to the crude oil trade situation, particularly that passing through the Strait of Hormuz blockaded by Iran,” Satya stated in an official remark on Tuesday (24/3/2026).
In the short term, the government is deemed effective in educating the public on energy conservation. Satya urged that this positive trend be continued as a precautionary measure against global uncertainties.
Several conservation steps promoted by the government include:
To strengthen energy sovereignty in the long term, Satya highlighted the importance of building additional storage (tanks) for national fuel reserves. This step will ensure domestic supply availability remains secure even amid import disruptions.
Additionally, increasing domestic oil and gas exploration activities is non-negotiable. Currently, Indonesia’s oil production stands at around 600,000 barrels per day, while national consumption exceeds 1.5 million barrels per day. There is a significant gap that must be closed through boosted domestic production to reduce over-reliance on international market price fluctuations.
The Economist’s analysis also shows Indonesia’s strategically more stable position compared to neighbouring countries like Vietnam. Although both are in the low exposure zone, Indonesia has a higher resilience score.
This is because Vietnam is considered more vulnerable to disruptions in the global manufacturing supply chain, which heavily depends on energy price stability. Indonesia’s advantage lies in its domestic resources and measured subsidy policies, which are the main differentiators in facing global economic shocks.
Looking ahead, DEN emphasises that a combination of public education, energy diversification, increased operational reserves, and accelerated energy transition will be the key to maintaining national resilience amid ongoing geopolitical dynamics.