Middle East Conflict Prompts Indonesia to Redirect LPG Imports to Australia

JAKARTA, KOMPAS.com - The escalating conflict in the Middle East is beginning to affect Indonesia’s energy supply strategy. To anticipate potential supply disruptions ahead of Eid, the government has decided to redirect a portion of its liquefied petroleum gas (LPG) imports from the region to other countries, including Australia.

This measure has been taken because part of Indonesia’s LPG supply remains dependent on the Middle East, a region currently engulfed in tensions stemming from Iran-Israel and United States conflicts.

Energy and Mineral Resources Minister Bahlil Lahadalia stated that approximately 70 to 75 per cent of Indonesia’s total LPG demand, which reaches 7.6 million tonnes, originates from the United States. Meanwhile, approximately 20 per cent is sourced from the Middle East, with the remainder coming from other nations.

Given the unresolved geopolitical situation, the government has begun diversifying its LPG import contracts from the Middle East by redirecting them to several alternative countries to ensure supply security remains intact.

“With the current Middle East situation, we are once again splitting our contracts and securing long-term agreements with America and several other countries. By the end of this week, two shipments from Australia will arrive for LPG,” said Bahlil whilst reporting to President Prabowo Subianto during a Full Cabinet Session at the State Palace on Friday 13 March 2026.

Previously, one LPG shipment had arrived on 4 March and another on 8 March.

According to Bahlil, the additional supply is sufficient to maintain stability in national LPG distribution over the coming months. The government is also confident that Indonesia’s LPG requirements from January through April can be fully met.

He added that the current state of national LPG reserves is secure. LPG reserve capacity is recorded at 15.66 days, exceeding the national minimum threshold of 11.4 days.

“Therefore, we are reporting to the President that fuel reserves for the Eid holiday for all fuel oils and LPG, God willing, are secure, Sir,” said Bahlil.