Strait of Hormuz Closure: Energy Ministry Assures Indonesia's Oil Stocks From Africa-US Remain Secure

Jakarta — Escalating conflict between Iran and the United States and its ally Israel has caused significant volatility in global crude oil prices. Following Israel’s military strike on Iran on 28 February 2026, which resulted in the closure of the Strait of Hormuz, disruptions to fuel and liquefied petroleum gas (LPG) tanker traffic and general cargo movements have created supply chain and logistics disruptions. Global crude oil prices have surged accordingly, destabilising supply chains and logistics networks.

Indonesia, as a crude oil importer, is experiencing the impact of disrupted oil supplies and rising global crude prices. The spokesperson for the Ministry of Energy and Mineral Resources (ESDM), Dwi Anggia, noted that crude prices have breached the USD 100 per barrel level, far exceeding the 2026 state budget assumption of USD 70 per barrel.

Despite soaring global crude prices, the government has pledged that subsidised fuel prices during the Lebaran period will not increase, and fuel stocks and distribution will remain adequate. Dwi Anggia stated that Indonesia’s energy reserves are above the national minimum energy reserve standard of 21 days, and the system for replenishing stocks will be maintained through both domestic production and imports.

The ESDM further explained that crude oil supplies from the Middle East transiting the Strait of Hormuz account for only 20% of Indonesia’s imports, allowing alternative sources from African nations, Brazil, and the United States to adequately meet domestic demand.

In preparation for Hari Raya Idul Fitri 1447 Hijri, the government has established a National Energy Sector Task Force to oversee energy supply (fuel, LPG, and electricity), ensuring adequate stocks and distribution of fuel and LPG throughout the festive period.