Indonesian Political, Business & Finance News

Neighbour in Energy Emergency, Bahlil Speaks Frankly on Latest BBM-LPG Situation in Indonesia

| Source: CNBC Translated from Indonesian | Energy
Neighbour in Energy Emergency, Bahlil Speaks Frankly on Latest BBM-LPG Situation in Indonesia
Image: CNBC

Jakarta, CNBC Indonesia - The Ministry of Energy and Mineral Resources (ESDM) has revealed the latest situation regarding energy availability, including national supplies of Fuel Oil (BBM) and Liquefied Petroleum Gas (LPG), amid escalating geopolitical conflicts in the Middle East.

Minister of ESDM Bahlil Lahadalia explained that the government has conducted mapping and secured energy stocks. Specifically for Solar diesel, Bahlil stated that it is now fully supplied domestically, without the need for imports.

Meanwhile, for petrol and LPG, Indonesia still requires supplies from abroad with varying proportions.

“And I express my thanks here and there, even though there are geopolitical conditions and incidents in the Middle East, but I am grateful to Allah Subhanahu Wa Ta’ala, on the orders of the President, almost every day we are instructed to check thoroughly and ensure the needs of the people, especially for BBM during the homecoming to hometowns or on the return journey,” Bahlil said during a press conference after inspecting BBM supplies at the Bolon petrol station, Colomadu Subdistrict, Karanganyar Regency, Central Java, on Thursday (26/3/2026).

“As I mentioned at the beginning, insya Allah the government will safeguard energy supplies, our energy reserves, and prices. On various occasions, even in conditions where almost the whole world is affected, but we are grateful to Allah for the President’s orders and the support of the people; today, BBM in our beloved country—whether petrol, diesel, or LPG—is well fulfilled,” he stated.

“However, we must realise that this geopolitical situation cannot be predicted by anyone. Even in various analyses, we pray that this war can end well and quickly. But looking at what’s happening, we are trying to ensure it doesn’t last too long,” he added.

“On that basis, the President last night instructed me and the team to immediately seek oil supplies from almost all countries and to optimise all the energy we have,” he continued.

“I convey at this opportunity that even though other countries, neighbouring countries in part, and some countries in Asia have started entering a state not desired by almost all countries in this regard—emergency—we must assure the Indonesian people that our diesel, insya Allah, is no longer imported, so it’s clear,” he emphasised.

“BBM in the form of petrol is still about 50% imported, part domestically, but we have already sought alternatives, including for crude oil. LPG we still import about 70% of total needs. But I assure all of you, insya Allah, we are also in a good condition for the next few days,” he explained.

Nevertheless, the government assures that domestic energy resilience remains safe and under control, even as several Asian countries begin facing energy emergency situations.

As a precaution, the government has redirected sources of crude oil imports that previously passed through the Strait of Hormuz.

Bahlil mentioned that the government is seeking alternative sources to replace oil from the Middle East with other countries, on direct instructions from President Prabowo Subianto.

“We also know that 20% of our crude comes from the Strait of Hormuz; now we have switched to other places, and the supplies are now insya Allah starting to improve. So please pray,” he added.

Amid these efforts, Bahlil urged the public to use energy efficiently and avoid excessive purchases or panic buying.

He also issued a stern warning to individuals exploiting the crisis to hoard subsidised BBM or resell it to the industrial sector.

“I ask my brothers and sisters who are rogue elements engaging in hoarding to look at Mother Earth, who now needs wise children of Mother Earth. If we love our country, if we love our people, we should not do things that are not appropriate,” Bahlil stressed.

Regarding pricing policy, the government assures there has been no increase in subsidised BBM prices amid this global turmoil.

The Ministry of ESDM continues to coordinate with the Ministry of Finance to find the right subsidy cushioning scheme so that the crisis burden does not directly hit people’s purchasing power.

“Pray for us, from the government, especially for subsidies; until last night, the President’s direction was to find ways so that we do not burden the people. So for subsidies, I and the Finance Minister are continuously seeking the best solutions; even in crisis, we still pay attention to the people’s condition,” he concluded.

Philippines in Energy Emergency

Philippine President Ferdinand R. Marcos Jr. has officially declared a national energy emergency status due to threats of fuel supply disruptions from escalating conflicts in the Middle East region.

The declaration was set through Executive Order (EO) Number 110, signed today, Tuesday (24/3/2026), considering the Philippines’ position as a country highly dependent on imports of petroleum products.

Citing the official Philippine News Agency (PNA), the Philippine government identified that the heating up of the geopolitical situation in the Middle East, particularly the potential closure of the strategic Strait of Hormuz route, could trigger global oil production and transportation disruptions.

This condition is assessed to have great potential to cause a domestic fuel supply crisis as well as trigger price volatility that threatens the country’s economic stability.

“As a net importer of petroleum products, the Philippines remains highly dependent on external fuel supply sources and is therefore vulnerable to disruptions in global oil production and transportation.”

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