Oil Prices Fluctuate Due to War, Luhut Finally Speaks Out
CIMAHI – Luhut Binsar Pandjaitan, Chairman of the National Economic Council (DEN), stated that the government has prepared various contingency scenarios to ensure the adequacy of fuel oil and liquefied petroleum gas (LPG) supplies amid global energy market turbulence following the outbreak of conflict between the United States and Israel with Iran. Luhut made this statement before tens of thousands of students attending a public lecture titled “Optimising the Role and Character of Students in Leveraging Demographic Dividend to Realise Golden Indonesia 2045” at Unjani Cimahi Auditorium on Wednesday, 11 March 2026.
“We have already outlined the various scenarios that exist based on data. So there is no need for excessive worry. From what I can see, the government is sufficiently prepared to respond,” said Luhut.
Luhut outlined the measures being prepared to address the escalating conflict in the Middle East.
“The contingency plans we have prepared cover oil price scenarios of $90 per barrel, $100 per barrel, and up to $150 per barrel. Of course we will see the average, as our state budget is based on $70 per barrel. So if prices rise by $10 per barrel, it could mean a budget shortage of 70 trillion rupiah. However, after we calculated it yesterday, we were relieved—everything is still manageable,” Luhut explained.
Luhut stated that scenarios and contingency plans are necessary to address the worst-case impacts of the US-Israel-Iran conflict, which threatens energy supplies. This is because the government cannot predict when the conflict will end.
Luhut disclosed that he had summoned Pertamina Patra Niaga to receive direct briefings regarding national energy reserves. The results showed that LPG supplies had experienced some difficulties, but these have been resolved as shipments from the United States have set sail towards Indonesian waters.
“When we checked the data, LPG appeared to be at critical levels. However, from Patra Niaga’s explanation and our subsequent verification, the ship from America has already begun entering Indonesian waters. So we are not seeing any serious issues,” said Luhut.
He added that from the major islands, LPG gas has been distributed to remote areas that are indeed difficult to access.
“On Java, there are not too many problems, because the supply arrives directly and can be distributed. But outside Java, in distant areas, there are challenges because of transportation logistics. For this reason, starting today, Pertamina has been channelling gas to regions outside Java,” Luhut said.
Similarly, fuel oil supplies have been confirmed as secure. For this reason, Luhut urged the public not to worry about energy supplies amid the escalating conflict between the US, Israel, and Iran.
“As I see it, there are no serious fuel supply problems, and I can see the government has contingency measures in place to respond if this conflict continues somewhat longer. So there is no need for excessive concern,” said Luhut.