Luhut Forecasts Iran-US War to End Soon: No Fuel Oil Crisis Expected
Jakarta, CNBC Indonesia — Luhut Binsar Panjaitan, head of the National Economic Council (DEN), has assured the public that global energy market volatility stemming from the eruption of war between the United States-Israel and Iran will not disrupt supplies of fuel oil and LPG in Indonesia.
He stated that global developments indicate several factors with the potential to ease pressure on energy markets, including the possible release of oil reserves by G7 nations as well as projections that geopolitical dynamics will ease within the coming weeks.
“We are optimistic that domestic energy reserves will remain sufficient and can be maintained properly,” Luhut said in a written statement on Wednesday (11 March 2026).
The head of the National Economic Council emphasised that the government will continue to monitor developments intensively to ensure the stability of national energy supplies remains secure.
He revealed that he had summoned the director of planning and business development at Pertamina Patra Niaga and the director of refinery operations to receive direct briefings on national energy reserves and the mitigation strategies that Pertamina has prepared to maintain supply stability.
“I have just listened directly to explanations from Pertamina Patra Niaga. In general, the condition of domestic fuel oil supplies remains sufficient and there is no fuel crisis issue. Our reserves are at a level sufficient to maintain supply stability,” Luhut said.
National LPG reserves, he added, are also deemed sufficient. Despite facing pressure from global geopolitical dynamics that could affect the energy supply chain, Pertamina, he said, has prepared various mitigation measures to ensure supplies remain secure.
The mitigation strategy for domestic supply pressures, he said, will be carried out by Pertamina through optimising refinery production, including diverting a portion of propylene production to LPG, increasing Pertalite production from domestic refineries, and renegotiating and strengthening coordination with international suppliers.
Additionally, coordination is also being conducted between PGN and Pertamina Patra Niaga to maximise compressed natural gas (CNG) use for industrial sectors where possible switching from LPG is viable, allowing LPG distribution to be more focused on household needs.
“The government, through Pertamina, has prepared concrete mitigation measures. Starting from optimising refinery production, adjusting energy production, to coordinating with global suppliers. This demonstrates that our energy system is sufficiently resilient in facing global dynamics,” he asserted.
During the meeting, developments regarding two Pertamina tankers currently in areas affected by global geopolitical dynamics were also discussed.
Pertamina confirmed that the MT Pertamina Pride and MT Gamsunoro tankers are currently in safe condition and on standby or hold position status, not in emergency conditions.
Communication with both vessels continues on a regular basis every four hours to ensure crew safety and monitor developments in the field.
On this occasion, Luhut also assured the public that the government has taken anticipatory measures to ensure energy supply security ahead of the Lebaran holiday travel period, including through strengthened coordination with energy state-owned enterprises and more intensive distribution monitoring in various regions.
“The government has also prepared anticipatory measures to ensure fuel oil and LPG supplies remain secure ahead of travel and Eid celebrations. We want to ensure that people who will travel and celebrate Eid al-Fitr can feel at ease because energy needs during this period remain well provided,” Luhut said.