Video: Iran-US War Serves as "Alarm" for Indonesia to Accelerate Electrification and Renewable Energy

Jakarta, CNBC Indonesia - Indonesia’s Vice Chairman of the MPR, Eddy Soeparno, has addressed the impact of the Middle East war, which has disrupted energy sector supply chains, including a surge in global crude oil prices.

Eddy noted that although there is no direct impact, the closure of the Strait of Hormuz could trigger a scramble for crude oil in the world market. Therefore, efforts are needed to curb energy imports through the development of new renewable energy (EBT), increasing domestic oil and gas production, and strengthening buffer energy reserves to 90 days.

In addition, Eddy views the Middle East situation as an “alarm” for accelerating electrification efforts and harnessing EBT potential. Nevertheless, there are still challenges in EBT development, one of which is the supporting manufacturing industry that is not yet ready, thus still relying on imported products, as well as the substantial funding needs for investments up to Rp 3.7 quadrillion.

What is the legislative perspective on the impact of the war and the anticipatory measures that the Indonesian government must take? For more details, watch the dialogue between Syarifah Rahma and Vice Chairman of the MPR RI, Eddy Soeparno, in Squawk Box, CNBC Indonesia (Wednesday, 01/04/2026).