Pertalite, biodiesel supply remains secure despite global shocks: Govt

“Indonesia’s average oil purchase price is currently around $91 per barrel; this remains relatively stable through the end of the year, meaning supplies of Pertalite and biodiesel are secure,” Hartarto told reporters.

He noted that ongoing conflicts in Ukraine and the Middle East, alongside tensions in the Strait of Hormuz, continue to pose risks to global economic growth.

However, he emphasized that Indonesia’s current purchasing structure shields domestic fuel needs from severe immediate pressure.

In addition to fuel, national electricity generation remains stable because power plants rely heavily on domestic coal reserves rather than international energy imports.

Hartarto stated that this reliance on domestic coal has protected national electricity costs from broader market volatility.

Regarding downstream gasoline needs, the minister explained that Indonesia’s supply routes run primarily through Singapore via the Strait of Malacca, bypassing the geopolitical risks of the Strait of Hormuz.

This insulation helped support Indonesia’s 5.45 percent economic growth in the first half of the year, placing the country among the top performers in ASEAN and the G20.

Inflation also remained well-managed at 2.88 percent despite global inflationary pressures.

Hartarto concluded that controlled inflation and reliable domestic energy supplies remain critical assets as Indonesia navigates ongoing international economic uncertainty.

Translator: Muhammad Harianto, Resinta Sulistiyandari