Indonesian Political, Business & Finance News

Strait of Hormuz Closure: Bahlil Redirects Middle Eastern Oil Imports to the United States

| | Source: KOMPAS Translated from Indonesian | Trade

JAKARTA – The government is redirecting its entire crude oil imports from the Middle East to the United States.

Energy and Mineral Resources Minister Bahlil Lahadalia described this step as mitigation against the conflict involving Israel, the United States, and Iran, as well as the closure of the Strait of Hormuz.

The Strait of Hormuz serves as a primary global energy distribution route. Approximately 20.1 million barrels of oil per day transit through this passage for global supply needs.

“Of those 20.1 million barrels, Indonesia is among the countries importing from the Middle East that transit through the Strait of Hormuz,” Bahlil stated during a press conference at the Energy and Mineral Resources Ministry in Jakarta on Tuesday, 3 March 2026.

The government has decided to redirect 25 percent of imports from the Middle East to the United States.

“Twenty-five percent of the total crude oil we order from the Middle East will be redirected to the US,” Bahlil said.

This redirection also forms part of the Agreement on Reciprocal Trade between Indonesia and the United States. Indonesia has committed to purchasing energy products worth USD 15 billion, or approximately IDR 253 trillion based on an exchange rate of approximately IDR 16,900 per US dollar.

Bahlil stated that the duration of tensions in the Middle East is difficult to predict. Information received indicates that the conflict could last a short period or extend longer.

“Although information suggests that these tensions will resolve within what some say is five days, or four weeks, our assessment, based on our analysis, is that we cannot predict when this will end. It could be swift or prolonged,” Bahlil said.

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