Indonesia's Crude Oil Imports via Strait of Hormuz Around 20%, Government Outlines Scenarios

The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, stated that Indonesia’s crude oil imports through the Middle East region account for approximately 20-25% of total supplies. These supplies are at risk due to potential closure of the Strait of Hormuz following the Israel-America-Iran conflict.

Bahlil explained that approximately 20.1 million barrels of crude oil transit through the Strait of Hormuz daily worldwide, including supplies destined for Indonesia.

“Praise be to God, after detailed analysis, from our total crude imports from the Middle East, it is approximately 20% to 25%. The rest we source from Africa, Angola, America, and several other countries such as Brazil,” Bahlil stated during a press conference at the ESDM Ministry office in Jakarta on Tuesday, 3 March.

The government is preparing a strategy to prevent Indonesia from becoming trapped by global dynamics. Bahlil noted that tensions in the Middle East cannot be predicted to end soon. In light of this, the government is also developing contingency plans for the worst-case scenario if the conflict continues.

“The scenario involves diverting some of the crude oil we currently source from the Middle East to America instead. This ensures certainty in our crude oil availability,” he said.

Meanwhile, regarding petrol types RON 90, 93, 95, and 98, Bahlil stated that Indonesia does not import these from the Middle East. “We source these from countries outside the Middle East, including Southeast Asia. So there is relatively no problem in this regard,” he added.

Domestic fuel prices have the potential to increase if the Middle East conflict continues. The Strait of Hormuz is the world’s most strategic oil shipping route. The closure of this vital supply route could have severe consequences for global energy markets and Indonesia’s fuel sector.