PM Takaichi Rejects Energy Restrictions to Keep Japan's Economy Running

Tokyo - Japanese Prime Minister Sanae Takaichi has rejected a parliamentary proposal to implement energy restriction policies for the public amid supply uncertainties caused by the conflict in the Middle East. PM Takaichi emphasised that economic activities must not be halted. “I am not convinced that current economic or social activities need to be stopped,” she said in response to a question from an opposition parliamentarian regarding the need to adopt emergency economic measures. Takaichi also assured that her government is continuously taking steps to secure supplies of commodities from other sources. Furthermore, Takaichi stated that, to date, she does not see the need for the Japanese Government to allocate additional funding for the country, especially after the Japanese parliament approved the 2026 budget of 122.31 trillion yen (Rp13.23 quadrillion) in early April. The Japanese Government can still rely on reserve funds from the budget, if necessary, to respond to the impacts of the Middle East conflict, she asserted. Takaichi’s comments in parliament came as the Strait of Hormuz, the main route supplying more than 20 percent of the total global energy supply, has begun to close effectively since the war between the United States and Israel against Iran commenced at the end of February. As a result, Asian countries reliant on crude oil imports have called for conservation and reduction in fuel oil consumption. Japan depends on the Middle East for crude oil imports. As reported, several countries have taken measures in response to the closure of the Strait of Hormuz. South Korea has called for reduced energy use, and Malaysia has encouraged its citizens to work from home (WFH).