Israeli Conflict Of Iran Heats Up, Indonesia Remains Resilient To Fuel Prices Until June 2024

JAKARTA - Director General of Oil and Gas (Migas) of the Ministry of Energy and Mineral Resources (ESDM) Tutuka Ariadji ensured that the government would keep fuel prices until June 2024 even though the Israeli and Iranian conflicts were heating up.

"Yes, fuel prices are still like that (not changing until June)," said Tutuka in a webinar entitled "The Fun Chat of the Impact of the Iran-Israeli Conflict on the Indonesian Economy", Monday, April 15.

However, Tutuka also said the government was still waiting for Saudi Arabia's response to the attacks launched by Iran against Israel. Because the majority of Indonesia's crude oil imports come from Saudi Arabia, Nigeria, Angola and Gabon. Later, Saudi Arabia's response will affect Indonesia's energy security in the future.

"Saudi certainly has an effect, this is what Pertamina is currently simulating, various ways to anticipate conditions if there is a continued escalation. There are no imports from Iran, even though we are collaborating but the implementation is not easy (imports), so until now there is none," continued Tutuka.

Tutuka also explained that currently Iran's crude oil production is 3.4 million barrels per day (BOPD) with exports of 1.2 million BOPD. Meanwhile, China produces 4 to 4.2 million BOPD oil and imports 11-12 million BOPD.

"This affects the world's supply map and demand for oil with this escalation. Meanwhile, Indonesia was not included in one basket. We imported crude parts from Saudi Arabia and Nigeria," continued Tutuka.

Tutuka revealed that his party together with Pertamina are conducting various simulations to anticipate the escalation of the conflict between Iran and Israel.

"If there is an escalation, we anticipate that we will identify where our imported sources are turned. We are looking for other places. That is what is important," concluded Tutuka.