Observer: Energy Preparedness Critical Amid Escalating Global Conflict
Samarinda – Rizky Yudaruddin, an economics observer at Mulawarman University, has warned of the importance of energy preparedness and achieving energy self-sufficiency for Indonesia amid increasing escalation of global geopolitical conflicts at present.
“The conflict between the United States, Israel and Iran regarding uranium enrichment is creating market uncertainty and will have cascading impacts on global geopolitics,” said Rizky in Samarinda on Sunday.
The academic, who features on Stanford University’s list of the two per cent most influential scientists in the world, noted that worsening escalation has considerable potential to disrupt international trade routes.
Disruptions would particularly affect the Red Sea region, which has consistently served as a vital artery for 70 per cent of global trade, he added.
“This strategic waterway is extremely crucial for the smooth distribution of energy commodity supplies to various parts of the world,” said the academic, who has previously conducted research on the impact of war and geopolitical conflict on global investor behaviour.
Rizky further stated that obstacles to this logistics distribution route would certainly damage the economies of many countries due to disrupted supply chains.
“This condition will certainly trigger a significant surge in crude oil prices on the international market,” he said.
Although some investors might profit from rising share prices, the overall stability of the energy sector would be impacted.
According to him, the current rise in global oil prices ultimately has a direct bearing on the stability of Indonesia’s economy.
“All industrial sectors in the country will feel heavy burden due to the high national dependence on energy supplies from abroad,” said Rizky.
Therefore, he recommended that the Indonesian government must respond to the situation by promptly implementing strategic and concrete measures.
The primary step that must be accelerated is maximising the potential of domestic industries to achieve the energy self-sufficiency target.
The achievement of self-sufficiency, according to him, is crucial and urgent to reduce the country’s dependence on foreign energy supplies.
Beyond securing conventional energy, accelerating the development of green or renewable energy must also be a primary focus of the government at present.
“The geopolitical and military tensions in the Middle East region are predicted to persist for a considerable length of time,” he said.
Recognising this, Rizky observed that many nations are now competing to realise energy independence for their national interests.
“This energy preparedness becomes the key to ensuring that domestic economic activity remains resilient amid global market turbulence,” said Rizky.