Strait of Hormuz Closed, Energy and Mineral Resources Minister Says Indonesia Still Imports Oil Ahead of Eid: 20 Days of Fuel Stock

JAKARTA - The government has started to recalculate the risk of energy supply after the issue of the closure of the Strait of Hormuz strengthened amid the heating of the Middle East geopolitics. Minister of Energy and Mineral Resources Bahlil Lahadalia admitted that Indonesia still imports oil ahead of Eid, so that any disruption to strategic shipping routes will immediately hit the market.

"Maybe it's related to the current conditions, geopolitics, yes, related to the closure of the Iranian Strait of Hormuz. Because this is also an anticipation of the world's oil supply. Because after all we are still importing before Lebaran," said Bahlil to reporters at the Presidential Palace Complex, Jakarta, Monday, March 2.

He said that the price movement had responded. "Slowly, some of the prices have changed," he said, referring to the rise in Brent prices.

Regarding domestic resilience, Bahlil ensured that stocks were still safe, but gave a clear limit. "It's still enough, 20 days," he said when asked about national fuel reserves.

Bahlil emphasized that until now there has been no direct pressure on the subsidy post. "Until today there is no problem, but of course the world price will be corrected when geopolitical conditions continue to heat up in the Middle East," he said.

Mitigation and policy options, said Bahlil, will be decided after the National Energy Council (DEN) meeting. "Later, I will meet tomorrow, God willing, the National Energy Council. I will report it first," he said. "After that, I will convey the results of the analysis and study from the DEN."

Regarding imports from the United States, Bahlil said the process was gradual after the commitment was signed. "US imports are after it is signed, we will carry out the follow-up in detail ... we will give it a chance of about 60 days," he said. He added, some of the supplies from the US have been taken, "especially LPG".