JP Morgan Says Indonesia Can Withstand Energy Crisis, Here is Airlangga's Response
Indonesia ranks second as the country most resilient to global energy shocks. This is based on the Eye on the Market report published by J.P. Morgan Asset Management titled Pandora’s Box: The Global Energy Shock of 2026, released on 21 March 2026.
Responding to this, Coordinating Minister for the Economy Airlangga Hartarto stated that the recognition from J.P. Morgan reflects the collective efforts across ministries and agencies in maintaining national energy resilience.
“This result is not merely an appreciation of the current situation, but a validation of the government’s long-term policy choices in maintaining a balance between utilising domestic energy sources and accelerating the energy transition,” Airlangga said in an official statement quoted on Thursday (23/4/2026).
Furthermore, Airlangga explained that amid global energy price volatility, this position provides more controlled fiscal space for the 2026 state budget and helps protect public purchasing power as well as the continuity of business activities.
He also emphasised that this achievement does not make Indonesia complacent about remaining risks.
“The government continues to strengthen several policy directions, including optimising domestic oil and gas production to reduce the oil and gas trade deficit and strengthen non-tax state revenue, accelerating the energy transition through the development of new renewable energy (EBT) in line with the National Energy Master Plan (RUKN) and the Electricity Supply Business Plan (RUPTL), expanding the adoption of battery-based electric motor vehicles (KBLBB) as a structural strategy to reduce dependence on oil, as well as diversifying energy supply sources and logistics routes to strengthen resilience against geopolitical risks,” he said.
As noted, the J.P. Morgan report analyses 52 countries representing around 82% of global energy consumption, using the total insulation factor indicator, a composite measure aggregating four main components of domestic energy sources—domestic gas production, domestic coal production, nuclear power generation, and renewables—as a percentage of national final useful energy.
Indonesia recorded an insulation factor of 77%, just slightly below South Africa (79%) and above China (76%) and the United States (70%).
Indonesia’s energy resilience is primarily supported by the significant contribution of domestic coal production, which meets around 48% of national final energy consumption, domestic natural gas at 22%, and renewables at 7%.
In the report, J.P. Morgan explicitly groups Indonesia with China, India, South Africa, Vietnam, and the Philippines as countries that substantially benefit from domestic coal production during the energy shock period.
Indonesia is also assessed to have a very low direct exposure to global energy distribution routes currently in the spotlight.
Oil and gas imports through the Strait of Hormuz only account for about 1% of total national primary energy consumption, far below East Asian countries such as South Korea (33%), Taiwan and Thailand (27%), and Singapore (26%).
In contrast, the report highlights advanced countries like Italy, Japan, South Korea, Singapore, and the Netherlands as the most vulnerable due to their high dependence on oil and gas imports.