Strait of Hormuz Opened on Limited Basis, Indef Urges Indonesia to Negotiate with Iran

Iran has permitted transit ships not affiliated with the United States (US) or Israel to cross the Strait of Hormuz, which is seen as an opportunity for Indonesia. This limited opening of the strait was noted by Abra Talattov, Head of the Centre of Food, Energy and Sustainable Development at the Institute for Development of Economics and Finance (Indef). “If Indonesia can negotiate directly with Iran to ensure our ships can cross the Strait of Hormuz, I believe this could be a game changer for national energy resilience,” Abra told Media Indonesia on Tuesday (24/3). “We are talking about a route that flows around 20% of the world’s oil supply, so when many countries face obstacles, Indonesia could have more guaranteed access to global energy supplies,” he explained. According to him, this would directly impact the stability of domestic fuel prices, keep inflation under control, and strengthen Indonesia’s bargaining position for more competitive oil prices. Furthermore, Abra views this not only as an energy issue but also a geopolitical and economic opportunity. If Indonesia can maintain a neutral stance and gain Iran’s trust, it could enter alternative energy distribution routes in the region and even potentially become a regional logistics hub when many countries struggle with access. “This would strengthen energy resilience while opening opportunities for fiscal efficiency as energy import costs could be reduced,” he emphasised. Moreover, he said that if these negotiations succeed and Indonesia takes a strategic position, the impact on the state budget (APBN) could be very significant. The risk of widening the fiscal deficit due to surges in energy subsidies could be curbed or even eliminated. “Because so far, the biggest pressure on the APBN has come from rising global oil prices—which directly drive the burden of fuel and LPG subsidies. With more stable supply access and controlled prices, the need to raise subsidised fuel and LPG prices can also be avoided, thus maintaining fiscal stability and people’s purchasing power,” he concluded. Previously, Iran has taken steps to ensure that transit ships not affiliated with the United States (US) or Israel can cross the Strait of Hormuz, said Iranian President Masoud Pezeshkian on Monday (23/3), as reported by Antara. “Iran has taken steps to ensure the safety of shipping through this waterway and will carry out the necessary coordination for ships not affiliated with the aggressor side,” Pezeshkian said in a telephone conversation with Pakistani Prime Minister Shehbaz Sharif, as quoted by his office. The blockade of the Strait of Hormuz was triggered by US and Israeli operations against Iran, according to the Iranian President. On Sunday, Iran’s permanent representative to the International Maritime Organisation (IMO), Ali Mousavi, stated that all ships, except “enemy” ships, could cross the Strait of Hormuz as long as they coordinate with Iran. The Japanese government has affirmed it will deploy all diplomatic efforts alongside the international community to ease tensions in the Strait of Hormuz amid escalating conflict. Japan is intensifying diplomatic efforts to maintain stability in the Strait of Hormuz, a vital route for crude oil imports that supports the nation’s primary energy needs. The global energy crisis due to the war involving the United States, Israel, and Iran is increasingly concerning following disruptions to oil distribution routes in the Strait of Hormuz. The Strait of Hormuz is once again the focus of global attention with plans to open the route, given its role as one of the most vital points in world energy distribution. Plans for joint control of the Strait of Hormuz by the United States and Iran represent a new dynamic that could alter the power map in the Middle East amid ongoing conflict. President Prabowo Subianto assesses that Indonesia’s foreign policy in the Middle East region must adhere to non-aligned principles amid interconnected conflicts. The role of Iran versus Israel and the United States will have a significant impact on Indonesia. Lecturer in International Relations at the Faculty of Social and Political Sciences, University of Airlangga (UNAIR), Probo Darono Yakti, explained that Indonesia’s energy system has sufficient resilience to face global dynamics, including potential oil price fluctuations due to geopolitical turmoil in the Middle East.