Deputy Foreign Minister Arif Havas Oegroseno stated that Indonesia is increasing crude oil imports from Africa to alleviate possible energy disruptions associated with tensions in the Strait of Hormuz.
He mentioned that Indonesia is looking for oil sources from areas that do not depend on shipping lanes through the strait.
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He states that Africa has emerged as a viable alternative source of crude oil for Indonesia since shipments from there avoid the Strait of Hormuz.
Indonesia is additionally investigating oil import possibilities in Latin America, where numerous nations have oil and gas reserves. In early April, Pertamina, the state-owned energy firm, mentioned that Africa had emerged as one of Indonesia's alternative sources of crude oil due to tensions in the Middle East.
The company stated that this action aligns with Energy and Mineral Resources Minister Bahlil Lahadalia's request to obtain alternative crude oil sources while the Strait of Hormuz continues to be influenced by regional conflicts.
Pertamina stated it is still working diligently to guarantee the supply of fuel and liquefied petroleum gas (LPG) for both homes and industries. The action occurs amidst increased tensions in the Persian Gulf due to the rise in regional conflict involving Iran, the US, and Israel.
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The Strait of Hormuz, a major route for energy shipping, manages a large portion of international crude oil and liquefied natural gas commerce. Otoritas Indonesia telah mengevaluasi kemungkinan dampak terhadap keamanan energi domestik, karena sekitar 20–25 persen impor minyak mentah negara tersebut diangkut melalui selat.
The quest for alternative supplies intensified following reports that two tankers managed by Pertamina International Shipping (PIS) remained stuck in the Arabian Gulf area and had not yet passed through the Strait of Hormuz.
Earlier, The Ministry of Energy and Mineral Resources (ESDM) is accelerating the development of unconventional oil and gas regulations for completion by June, with the goal of enhancing domestic production and protecting Indonesia’s economy from a declining rupiah.
The policy initiative arrives at a crucial moment for Indonesia's currency. On Friday morning, the rupiah decreased by 17 points, or 0.09 percent, exchanging at Rp18,066 per US dollar from its prior close of Rp18,049.
A declining rupiah greatly raises the expenses of Indonesia's energy imports. Information from the National Energy Council (DEN) emphasizes Indonesia's significant vulnerability to shifts in global currencies and supply chains.
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The nation now uses approximately 1.52 million barrels of oil each day, while local output stagnates at merely 610,000 barrels daily—compelling the country to depend significantly on imported crude to cover the shortfall. Although there is an existing ministerial decree for unconventional energy resources, the ministry observed that the present structure fails to attract substantial investment.
Laode Sulaeman, the Director General of Oil and Gas at the ministry, confirmed that focused updates are in progress to enhance operations and provide better institutional support to the state-owned energy corporation PT Pertamina.