MPR Deputy Speaker Reveals Vulnerabilities in Indonesia's Fuel Supply Chain

Deputy Speaker of the People’s Consultative Assembly (MPR) Eddy Soeparno has revealed that the fuel oil (BBM) supply chain is still overshadowed by obstacles, given the ongoing geopolitical conflicts. Currently, Indonesia’s fuel production remains dependent on overseas supplies. Eddy Soeparno mapped out several vulnerabilities in Indonesia’s energy sector amid the uncertain situation in the Middle East. He stated that disruptions to global distribution routes are impacting the availability of fuel stocks for national public and industrial needs. “Then the last is the energy disruption, the supply chain disruption that we are feeling today. This is due to the geopolitical dynamics in the Middle East,” he said at the CNBC Indonesia Coffee Morning event on Thursday (23/7/2026). According to him, Indonesia currently imports around 20% of its crude oil needs from the Middle East, but the greatest dependency lies in fuel products. He noted that 70% of the national fuel supply is sourced from Singapore and Malaysia, meaning that any constraints faced by these supplier countries directly affect domestic stock availability. “This means that when Singapore and Malaysia face difficulties purchasing crude from the Middle East, we will certainly also face difficulties receiving our fuel supplies,” he added. The volume of fuel demand in the country is very high, with demand for Pertalite reaching 33-34 million kilolitres (kl) per year. Meanwhile, the need for diesel is around 19 million kl per year, although this volume is starting to be assisted by the implementation of biofuel blends. “Today our Pertalite consumption is approximately 33-34 million kl. Then our diesel requirement is around 19 million kl, and that is enormous,” he added. He argued that the imbalance between production capacity and daily consumption is the main trigger for pressure on domestic fuel availability. Indonesia is currently only able to produce around 600,000 barrels of oil per day (bpd), whereas the total requirement to drive economic mobility reaches 1.6 million bpd. “Today, in terms of energy security, we are still pinning our hopes on imports to drive our overall economic mobility,” he stressed. Eddy warned that disruptions to the global crude oil supply chain are expected to impact not only the energy sector but could also trigger price increases for other hydrocarbon-derived commodities, from fertilisers to medicines.