Luhut: Indonesia can't take sides and antagonise Iran

Luhut Binsar Pandjaitan, chairman of the National Economic Council, has stressed that Indonesia cannot take sides with the United States and simultaneously antagonise Iran amid the widening conflict. “We can’t side with the United States and be at odds with an Islamic country, can we? That’s not right either,” Luhut said in a post on his personal Instagram account, on Thursday (5 May 2026). He said antagonising Iran is not a rational option for Indonesia. A similar stance would also be unlikely to be applied toward China. China and Russia are known to be Iran’s allies. The two countries have close cooperation with Iran, including in the energy and military sectors. “Not to mention China later. Don’t forget that the ones who invest a lot in Indonesia are China,” Luhut said. Luhut noted that President Prabowo Subianto understands the issue. Nevertheless, he reminded that foreign policy formulation should be done carefully. The war in the Middle East has closed the Hormuz Strait, the world’s main oil distribution route from Gulf countries. The situation risks disrupting energy supplies and weighing on the state budget. National oil reserves are said to be sufficient for around 20 to 30 days. Meanwhile, the oil price assumption in the APBN is set at 70 US dollars per barrel. Luhut predicted that world oil prices could reach 100 US dollars per barrel. “As far as I know, the government is looking for other oil sources than those currently available,” he said. “For example with the United States, and also we will see whether Venezuela can, and is able to supply,” he added.