Strait of Hormuz Closed, Indonesia's LPG Supply Also Threatened

Jakarta, CNBC Indonesia – The closure of shipping routes in the Strait of Hormuz is not only a risk to crude oil and fuel supply but also potentially threatens domestic Liquefied Petroleum Gas (LPG) availability. Komaidi Notonegoro, Executive Director of the ReforMiner Institute, urged the government to promptly anticipate risks to energy distribution, particularly LPG which relates to basic household needs. According to Komaidi, besides oil, the risk is equally important for LPG supply. Domestic LPG consumption is around 9 million tonnes per year, while domestic production is only about 1.8 million tonnes. “Domestic LPG consumption is 9 million tonnes per year. Meanwhile domestic production is only 1.8 million tonnes, meaning 7.2 million tonnes must be imported annually, sourced from two main locations,” Komaidi told CNBC Indonesia on Tuesday (3/3/2026). At least around 52% of Indonesia’s LPG imports come from the United States and the remaining 48% from the Middle East. Meanwhile, both sources are currently involved in regional conflicts with quite serious escalation. The escalation of the conflict in the Middle East, including Iran-Israel tensions and potential involvement of regional proxies, is seen as risking destabilising global energy supply. Therefore, the government needs to anticipate these conditions, as LPG relates to the most basic energy needs, namely for cooking. “If LPG runs out, the rush will be bigger than just the availability of BBM. While for BBM we might manage to reduce travel and transportation, when it comes to cooking needs it cannot,” he added.