ESDM Outlines Strategies to Maintain Indonesia’s Energy Security Amid Global Pressures
Indonesia is urging consumers to conserve fuel, diversifying its oil and LPG imports, and working to raise domestic production to protect its energy supply amid global geopolitical tensions. Speaking at the CNBC Indonesia Energy Forum, Director General of Oil and Gas Laode Sulaeman said LPG supplies had fallen to just five days’ worth during Eid before recovering. The government is also looking to biodiesel, state-funded exploration studies, and more flexible terms for oil and gas contractors to strengthen energy resilience.
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Indonesia’s Ministry of Energy and Mineral Resources outlined its strategy for protecting national energy supplies amid global geopolitical tensions. Speaking at the CNBC Indonesia Energy Forum in Jakarta on June 25, 2026, Director General of Oil and Gas Laode Sulaeman was responding to a JPMorgan assessment that placed Indonesia high in energy resilience.
Laode pointed to fuel availability in the first week of the conflict as one indicator. Several Southeast Asian countries experienced supply disruptions, with some declaring emergencies and urging people to drive less as fuel prices rose. In Jakarta, he noted, traffic remained heavy, which he took as a sign that fuel was still widely available.
The government urged households and motorists to conserve LPG and motor fuel to keep supplies available during the crisis. Laode said Indonesia’s LPG supply had fallen to just five days’ worth during Eid. Supplies recovered after the government moved to secure additional sources.
Indonesia also broadened its import sources to reduce reliance on supplies routed through the Strait of Hormuz. It expanded oil imports from Africa and increased LPG supplies from the United States and other countries. Laode said diplomatic visits help secure commitments from supplier countries.
Domestic oil production, which Laode put at around 600,000 barrels per day, also supports the country’s energy supply. The government sees room to expand the use of bioenergy by blending biodiesel with conventional diesel, reducing the amount of petroleum-based diesel needed.
To raise domestic oil and gas output, the government is encouraging the use of technology and exploration in new areas. It has allocated state budget funding for exploration studies and introduced more flexible production-sharing terms. Laode said contractors’ shares could rise to 40–50 percent depending on the risks they face, potentially attracting more investment.
Indonesia’s Ministry of Energy and Mineral Resources outlined its strategy for protecting national energy supplies amid global geopolitical tensions. Speaking at the CNBC Indonesia Energy Forum in Jakarta on June 25, 2026, Director General of Oil and Gas Laode Sulaeman was responding to a JPMorgan assessment that placed Indonesia high in energy resilience.
Laode pointed to fuel availability in the first week of the conflict as one indicator. Several Southeast Asian countries experienced supply disruptions, with some declaring emergencies and urging people to drive less as fuel prices rose. In Jakarta, he noted, traffic remained heavy, which he took as a sign that fuel was still widely available.
The government urged households and motorists to conserve LPG and motor fuel to keep supplies available during the crisis. Laode said Indonesia’s LPG supply had fallen to just five days’ worth during Eid. Supplies recovered after the government moved to secure additional sources.
Indonesia also broadened its import sources to reduce reliance on supplies routed through the Strait of Hormuz. It expanded oil imports from Africa and increased LPG supplies from the United States and other countries. Laode said diplomatic visits help secure commitments from supplier countries.
Domestic oil production, which Laode put at around 600,000 barrels per day, also supports the country’s energy supply. The government sees room to expand the use of bioenergy by blending biodiesel with conventional diesel, reducing the amount of petroleum-based diesel needed.
To raise domestic oil and gas output, the government is encouraging the use of technology and exploration in new areas. It has allocated state budget funding for exploration studies and introduced more flexible production-sharing terms. Laode said contractors’ shares could rise to 40–50 percent depending on the risks they face, potentially attracting more investment.
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