Oil Supply Plummets as Prices Surge; Public Urged to Use Public Transport
Jakarta – The ongoing conflict between Iran, Israel, and the United States continues to intensify, raising concerns about global energy supplies, particularly regarding the Strait of Hormuz, a vital shipping route for world oil supplies. Approximately 20% of global oil consumption passes through this narrow strait, including supplies destined for Indonesia.
Several Middle Eastern producers have begun reducing production. Kuwait, the fifth-largest oil producer in OPEC, announced production cuts and refinery output reductions as a precautionary measure following Iran’s threats to the security of vessels transiting the Strait of Hormuz.
Supply disruptions are also emanating from Iraq. Three industry officials told Reuters that production from three major oil fields in southern Iraq has declined by approximately 70% to just 1.3 million barrels per day, down from approximately 4.3 million barrels per day before the conflict escalated.
Responding to these developments, Saleh Abdurrahman, a member of the stakeholder element of the National Energy Council (DEN), expressed hope that the conflict would be short-lived and that geopolitical conditions would soon stabilise. “First and foremost, we hope the conflict ends soon,” he told CNBC Indonesia on Monday.
Saleh called for greater oversight of subsidised fuel distribution, requesting that PT Pertamina (Persero) strengthen digitalisation implementation through QR Code systems to ensure subsidies reach their intended targets more effectively.
He also emphasised that Indonesia’s current energy stock position remains secure. The DEN continues to monitor both domestic and global energy dynamics to prepare for various contingencies to maintain energy resilience. “The DEN continues to monitor the dynamics of our energy conditions and the global situation to anticipate various possibilities to safeguard our energy security,” he stated.
He therefore urged citizens to transition to public transport as a means of conserving energy consumption whilst supporting more efficient fuel use. “We continue to encourage the public to use public transport, and our public transport services are becoming increasingly better, safer, and more comfortable,” Saleh said.
Recent developments in the Middle East conflict show increasingly broad escalation, with cross-border attacks, rising death tolls, and surging global oil prices. Tensions between Iran, Israel, and their allies are now directly affecting several countries in the region and triggering international responses.