Geopolitical conflicts in the Middle East, which are predicted to disrupt global oil supply routes, are beginning to affect national energy security. Indonesia’s Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, stated that the country’s operational fuel reserves currently last only around 20-23 days, far below the international standard of 90 days.
Public concern has started to emerge in several regions ahead of the Idul Fitri homecoming period. In some areas of North Sumatra and Central Java, residents have reportedly engaged in panic buying at several gas stations to secure fuel supplies.
A member of the advisory board of the UGM Center for Energy Studies, Professor Deendarlianto, assessed that the dwindling operational fuel reserves should serve as a warning for the government to immediately improve its energy management strategies. The situation is closely linked to Indonesia’s heavy reliance on imported oil. Domestic crude oil production has not yet been able to meet the country’s increasing energy consumption.
“Our crude oil production is less than 700,000 barrels per day, while national demand is around 1.5 million barrels per day. This means we still have to import large volumes of crude oil to meet that demand,” he said on Thursday (Mar. 12).
According to Professor Deendarlianto, this dependence on crude oil imports makes Indonesia highly vulnerable to global geopolitical turbulence. Disruptions to international energy distribution routes caused by conflicts such as the Iran-Iraq War could lead to supply delays and higher global oil prices.
“We rely heavily on imports, so when conflicts or disruptions occur in distribution routes, supplies can be affected, and international oil prices will also rise,” said the UGM Mechanical Engineering lecturer.
However, Professor Deendarlianto emphasized that this situation could also serve as an opportunity for the government to accelerate the development of renewable energy sources in Indonesia. In the past, renewable energy development in Indonesia has been hindered because the costs of renewable energy remain higher than those of fossil fuels.
He encouraged the government to speed up the implementation of new energy policies, such as B40, in which 40 percent of the fuel content comes from palm oil, and E10 bioethanol derived from cassava or sugarcane. According to him, these policies could gradually reduce Indonesia’s reliance on imported fuels.
“When global oil prices rise, renewable energy becomes more competitive. This creates an opportunity for the government to accelerate the development of biodiesel, bioethanol, and other alternative energy sources,” he said.
Furthermore, the momentum created by rising global oil prices could also strengthen research and development in the energy sector. Professor Deendarlianto believes such developments could accelerate the transition toward more sustainable energy sources. Collaboration between universities and industry through applied research should be expanded to build Indonesia’s energy independence.
“The downstreaming process from basic research to applied research should happen now, especially in renewable energy,” he emphasized.
Nevertheless, Professor Deendarlianto believes that political courage in determining the direction of energy policy will ultimately determine whether Indonesia can break free from recurring energy crises. According to him, Indonesia has a strong bargaining position to strengthen its sovereignty in the energy sector.
“I believe this is the right moment for the research community and universities to accelerate applied research in renewable energy so that it can soon be implemented at an industrial scale,” he concluded.
Author: Diyana Khairunnisa
Editor: Gusti Grehenson
Post-editor: Rajendra Arya
Photo: Freepik