Luhut on Indonesia's Fuel Supply Amid US-Iran Conflict: No Need to Worry

The chairman of Indonesia’s National Economic Council, Luhut Binsar Pandjaitan, has stated that the government has prepared a series of scenarios to safeguard the supply of fuel oil (BBM) and liquefied petroleum gas (LPG) in response to the conflict between Iran and the United States, which is affecting the energy sector.

“Based on data, we have already outlined the scenarios. There is no need for excessive concern; I believe the government is sufficiently prepared to address this matter,” said Luhut when met in Cimahi on Wednesday (11 March 2026).

He outlined the contingency plans the government possesses. The scenarios that the government will eventually implement will continue to be guided by movements in crude oil prices globally.

“When oil prices reach USD 90, USD 100, or even up to USD 150 per barrel, these scenarios have already been prepared. Of course, we will look at the average because our state budget is based on USD 70. So we calculate that if the price rises by USD 10, it could reach approximately 70 trillion rupiah. However, after we calculated yesterday, we are relieved that everything remains manageable,” explained Luhut.

Luhut noted that LPG is already being distributed from major islands across the country to remote areas that are indeed difficult to access. Meanwhile, LPG availability on major islands does not pose any problems.

“On Java, there isn’t much of an issue because the gas comes in and can be distributed directly. However, outside Java where areas are far away, it is a problem because of transportation difficulties to those locations. For this reason, from today onwards, Pertamina is supplying gas to regions outside Java,” said Luhut.