TEMPO.CO, Jakarta - Deputy Chairman of the Indonesian Association of Energy, Mineral, and Coal Suppliers (Aspebindo), Fathul Nugroho, views the conflict between Israel and Iran, which has triggered a surge in global oil prices, as a potential opportunity for Indonesia to accelerate its efforts towards energy self-sufficiency. This is because the surge in oil prices should be seen as a warning for the fragility of national energy resilience.
He believes that this momentum should be utilized to speed up national energy self-sufficiency. Fathul evaluates Indonesia's dependence on oil imports has made the national economy very vulnerable to global turmoil.
"This condition should actually be a momentum for Indonesia to accelerate the energy self-sufficiency agenda," said Fathul in a written statement on Monday, June 16, 2025.
Fathul stated that Indonesia still imports about 813,000 barrels of crude oil and fuel products per day. When global oil prices rise, the impact is immediately felt on the oil and gas trade balance and the state budget.
The burden on the state budget, according to Fathul, will have an impact because the assumption of oil prices in the 2025 state budget is only US$ 82 per barrel, while the market price is now moving towards US$ 88-90 per barrel. "Every US$1 increase in Indonesia's crude oil price (ICP) could add a subsidy and compensation burden of up to Rp 1.5 trillion per year," he said.
Referring to Refinitiv data, the prices of Brent and WTI oil surged more than 10 percent in mid-June 2025 due to market concerns over the escalation of the Israel-Iran conflict. Fathul warned that this situation reflects previous crisis patterns, such as the 1990-1991 Gulf War or the energy crisis in 1973-1979, when oil prices sharply rose in a short period.
He also highlighted the importance of strengthening the capacity for national fuel storage and strategic reserves. Currently, Indonesia only has operational reserves for about 22 days of consumption. "Dependence on oil imports makes Indonesia very vulnerable to external shocks. History has shown that conflicts in the Middle East always trigger global energy crises. Therefore, the energy self-sufficiency agenda must not be postponed any longer," he said.
Editor's Choice: Iran's Threat to Close Strait of Hormuz Could Push Oil Prices to $130
Click here to get the latest news updates from Tempo on Google News
Israel Strikes Iran's State TV Headquarters, Interrupts Live Broadcast in Tehran
10 jam lalu
Government television building of Islamic Republic of Iran Broadcasting (IRIB) was attacked by Israel on Monday night.
Middle Eastern Nations Condemn Israel's Strikes on Iran, Urge De-escalation
12 jam lalu
In addition to condemning Israel's attack, Middle Eastern countries hope that all parties can show restraint and open themselves to dialogue.
Iran's Threat to Close Strait of Hormuz Could Push Oil Prices to $130
14 jam lalu
Iran's Parliament National Security said on Saturday that Tehran is considering shutting the Hormuz Strait in response to Israel's recent attacks.
Iran President Denies Nuclear Weapons Ambition as Israel Strikes Key Sites
16 jam lalu
President of Iran Masoud Pezeshkian stated that the country has no intention to develop nuclear weapons.
EU Leader Urges Netanyahu to Pursue Talks with Iran
16 jam lalu
President of the EU, Ursula von der Leyen, agrees with Netanyahu on the issue of Iran's nuclear weapons.
Iran Claims Capture of Two Mossad Agents Carrying Explosives and Drones
17 jam lalu
Two Mossad agents, carrying explosives and drones, were arrested by Iranian police.
Israeli Strike on Iran's Fordow Nuclear Site Triggers 2.5-Magnitude Quake
17 jam lalu
Israel attacked Iran's three main nuclear sites: Natanz, Isfahan, and Fordow.
Why Israeli Defenses Struggled Against Iranian Missile Attacks
18 jam lalu
The Islamic Revolutionary Guard Corps (IRGC) claimed that during the recent wave of missile attacks in Israel, they succeeded in using a 'new method' to force Israel's air defense system to attack each other.
Indonesia Establishes EU Desk to Facilitate European Investors
18 jam lalu
Indonesian Investment Ministry and the EU inaugurate the EU Desk to boost investment, simplify regulations, and strengthen economic cooperation.
Tourists Stranded in Israel Amid Escalating Conflict with Iran
19 jam lalu
Tourists in Israel who had planned to visit Jerusalem's Old City or Tel Aviv's beaches will now have to settle for shelters.
