Parliament Urges Government to Prepare for Rising Oil Prices
Geopolitical tensions involving several countries worldwide are beginning to impact the global energy sector. This situation has the potential to affect fuel availability and prices in various countries, including Indonesia.
Achmad Baidowi, a member of Commission VI of the Indonesian House of Representatives, has cautioned the government to ensure fuel availability remains secured, particularly ahead of the holiday season when Indonesians traditionally travel home. He noted that conflicts involving nations such as Iran, Israel, and the United States could disrupt global energy supply chains.
He assessed that the impact of such conflicts extends beyond the Middle East region and could affect other countries, including Indonesia. “With the conflict involving Iran, Israel, and America, it certainly impacts fuel supplies across the country. It is not just a Middle East regional matter, but also affects us,” Achmad stated during a meeting with Parlementaria following Commission VI’s work visit to the steel industrial zone operated by Krakatau Steel in Cilegon, Banten, on Thursday, 12 March 2026.
He explained that economically, this situation has the potential to trigger a rise in global oil prices. This occurs because energy supply decreases whilst demand remains high. “Consequently, it is automatic. Why? Because supply decreases whilst demand increases. According to economic law, this automatically drives prices up. Currently, oil prices have already exceeded $100 per barrel,” he elaborated.
According to Achmad, the government needs to anticipate this condition by ensuring national energy reserves, particularly fuel, remain available and distributed effectively. This is important to prevent disruptions to public mobility, especially during the holiday season and the annual migration exodus.
He therefore hopes that relevant ministries will take swift action to maintain the stability of national energy supply. “We hope that the relevant ministers, especially given the upcoming holiday season, will clearly ensure our energy stocks, particularly fuel, are not disrupted so that our people’s mobility during the migration home is not affected. Because this is our tradition, our culture that cannot be eliminated,” he concluded.