The war in Iran has disrupted global logistics routes, triggering an energy crisis expected to be even worse than that of the 1970s. Significant impacts are already evident in several Asian countries. Some countries have raised fuel prices, while the Indonesian government has stated it will not increase subsidized fuel prices.
Head of the New and Renewable Energy (NRE) Laboratory at the Faculty of Engineering, Universitas Gadjah Mada (FT UGM), Ahmad Agus Setiawan, stated that the government has taken a relatively bold step by holding back price increases through subsidies. Meanwhile, in neighboring countries, people in the Philippines have turned to alternative modes of transportation, such as walking.
“In South Asia, long queues at gas stations are commonly seen in India and Bangladesh,” Ahmad, who is familiarly known as Aas, said on Wednesday (April 8).
Government efforts to improve energy efficiency are reflected in policies that implement Work From Home (WFH) arrangements for civil servants and private-sector employees. According to Aas, in addition to energy-efficiency measures, the government needs to encourage the optimization of alternative energy development, as it is closely linked to governance.

Aas further explained, Indonesia’s significant role in supporting the global energy transition. First, as one of the most populous countries, Indonesia is also among the largest energy consumers. Second, high energy consumption makes Indonesia a major contributor to carbon emissions. Although Indonesia has long been one of the largest exporters of nickel and coal, these resources cannot be relied upon indefinitely due to their finite nature.
“If we look at the geopolitical landscape, crises like this are not new. Wars are often driven by the pursuit of energy resources. At the same time, the world is planning to reduce emissions. This will pose challenges for those who are unprepared. Therefore, we must move away from reliance on past energy sources and shift toward alternative energy,” he explained.
He also highlighted several examples of renewable energy sources being developed. The South Sulawesi Wind Power Plant is one of Indonesia’s wind energy facilities. Similar initiatives could be implemented in other regions, provided they have suitable wind conditions. In addition, Southeast Asia’s largest floating solar power plant is located at the Cirata Reservoir in West Java.
“Floating solar power plants are actually more efficient than land-based ones because they benefit from natural cooling provided by water. As a country dominated by maritime areas, Indonesia has significant potential to develop similar concepts,” said the lecturer from the Department of Nuclear Engineering and Engineering Physics.
Although the energy transition is inherently structural, Aas emphasized that the government must adopt an inclusive approach involving all stakeholders. In this regard, the role of academics is crucial, particularly in disseminating research findings.
“Beyond research, they play a vital role in educating the public and raising awareness,” he concluded.
Author: Ika Agustine
Editor: Gusti Grehenson
Post-editor: Zabrina Kumara
Photo: Freepik