Luhut Warns of Risks if Oil Price Reaches $100 a Barrel

JAKARTA — The Chairman of the National Economic Council (DEN), Luhut Binsar Pandjaitan, warned of potential pressures on the economy if world oil prices surge to $100 per barrel. Crude oil was trading around $78 per barrel. That level is higher than Indonesia’s 2026 State Budget (APBN) assumption of $70 per barrel. ‘Our economy could also be affected if oil prices suddenly rise, perhaps gradually, to $100 per barrel. Right now it’s $78. Our APBN assumes $70,’ Luhut said in a post on Instagram @luhut.pandjaitan, on Thursday (5 March 2026). ‘The Hormuz Strait matters; how large is the impact? How many days of our strategic oil and energy reserves do we have? If Hormuz is closed, what then? So contingencies must be prepared,’ he added. He stressed the importance of accurate data on national oil stock resilience. Detailed calculations are needed to map out anticipatory steps. ‘So I just checked yesterday that the reserves could be 30 days, or 18 days. We must now calculate carefully,’ he said. DEN is currently examining various inputs to formulate policy recommendations to the government. Calculations cover import sources, costs, and their impact on the State Budget. ‘From now on we must look at where we should import oil, how much it will cost, what the difference is, and what the impact on the APBN will be. We are also holding open discussions in the National Economic Council,’ Luhut said. ‘For instance with America, and with others. Will Venezuela also be able to supply? Because Venezuela is now a source of energy for the United States itself. What about African countries?’ He said. Luhut reminded that logistics factors and transport costs must be accounted for to ensure the effectiveness of the import diversification strategy.