Indonesian Political, Business & Finance News

US-Iran War Triggers Energy Risks, Experts Highlight Indonesia's Preparedness

| | Source: REPUBLIKA Translated from Indonesian | Energy
US-Iran War Triggers Energy Risks, Experts Highlight Indonesia's Preparedness
Image: REPUBLIKA

The escalation of the war between the Israel-United States alliance and Iran has driven fluctuations or even increases in global oil prices. Amid this situation, the Indonesian government is urged to take more adequate anticipatory steps.

Energy expert from Universitas Gadjah Mada (UGM) Dr Fahmy Radhi assesses that the government’s response to the war situation has not been sufficiently optimal. According to him, while several countries such as Japan, the Philippines, and Thailand have prepared preventive measures, Indonesia appears to lack strong preparedness.

So far, he continues, the government still states that the national fuel oil (BBM) supply conditions remain safe and that BBM prices will not be changed. However, Fahmy reminds that the uncertain global situation must still be anticipated.

“This is also dangerous if the war (US/Israel-Iran) continues and BBM prices are forced to be raised, leading to a crisis. This will cause public disappointment,” Fahmy stated in his comments to Republika on Monday (30/3/2026).

So far, the government has proposed policies such as working from home (WFH) and accelerating the use of electric vehicles. However, Fahmy assesses that these steps will not be effective in responding to short-term energy supply pressures.

He estimates that the WFH policy can only save around 10 percent of energy. This is with the caveat that public mobility will remain difficult to control fully even if they are “required” to work from home. On the other hand, the transition to electric vehicles is seen as a long-term solution whose implementation cannot be instant.

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