Indonesian Political, Business & Finance News

Indonesia Strengthens Oil Supply from Outside the Middle East

| | Source: REPUBLIKA Translated from Indonesian | Energy
Indonesia Strengthens Oil Supply from Outside the Middle East
Image: REPUBLIKA

JAKARTA — The government is accelerating steps to secure energy supplies amid escalating Middle Eastern conflict. Indonesia is beginning to strengthen oil supplies from outside the region to safeguard national energy resilience.

Economic Coordinating Minister Airlangga Hartarto stated that the government has prepared several cooperative agreements to expand import sources. This step is being taken to mitigate the risk of global distribution disruption resulting from the conflict involving the United States, Israel, and Iran.

“The government already has MoUs to obtain supplies from non-Middle East sources. For example, Pertamina has already concluded an MoU with America, several with Chevron, with ExxonMobil, and others,” said the Economic Coordinating Minister in Jakarta on Monday, 2 March 2026.

According to Airlangga, the conflict risks undermining the stability of global oil supplies, particularly if strategic shipping routes are disrupted. The government continues to monitor which countries are prepared to supply domestic requirements.

“We are monitoring what is available and what can be imported,” he said.

Airlangga assessed that the conflict’s impact does not stop at the energy sector. Global distribution disruption could drive up logistics costs and affect international trade flows.

He noted that the transportation and tourism sectors also potentially stand to be affected if escalation continues for an extended period. “The impact depends on how long the conflict lasts. We continue to monitor whether this will be short-lived or prolonged,” Airlangga stated.

Additionally, rising global oil prices create opportunities for fuel price adjustments within the country. “Prices will automatically rise as occurred during the Ukraine conflict. However, this time supplies from America are also increasing and OPEC is expanding production capacity,” said Airlangga.

The government emphasised that supply stability and economic impact management remain the primary focus in order to prevent global volatility from shaking national economic resilience.

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