The Ministry of Energy and Mineral Resources Makes the Surge in World Oil Prices as an Energy Transition Momentum

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) has made the surge in world oil prices due to the US-Israeli war with Iran, as an opportunity to make an energy transition.

"This is an opportunity for the government to continue to accelerate the development of renewable energy," said Energy and Mineral Resources Ministry (ESDM) spokesperson Dwi Anggia, quoted by Antara, Tuesday, March 10.

As reported by Sputnik, the price of Brent crude oil reached 118 US dollars per barrel for the first time since June 17, 2022. This price is higher when compared to the average oil price in January 2026, where Brent (ICE) is 64 US dollars per barrel, and US WTI is at 57.87 US dollars per barrel.

According to Anggia, the dynamics of the world oil price that is currently occurring is a reminder for the Ministry of Energy and Mineral Resources that energy security should not only depend on one energy source.

Therefore, the Ministry of Energy and Mineral Resources will accelerate the development of solar power plants (PLTS), geothermal power plants (PLTP), hydropower plants (PLTA), to bioenergy.

Furthermore, Anggia said the government continues to monitor geopolitical developments that affect commodity prices, such as crude oil.

The priority for the government at this time is to maintain energy stability in the country. The Ministry of Energy and Mineral Resources has also prepared various scenarios to maintain national energy resilience, such as shifting imports from the Middle East to other countries that do not pass through the Strait of Hormuz.

"But in the midst of global oil price dynamics, this also has a positive impact on the PNBP (Non-Tax State Revenue) of the oil and gas sector, because we also have domestic production of more than 600 thousand barrels per day," said Anggia.

Regional tensions have escalated since the US and Israel launched a massive attack on Iran on February 28, which has so far reportedly killed more than 1,000 people, including Iran's Supreme Leader Ali Khamenei, more than 150 schoolgirls, as well as a number of high-ranking military officials.

Iran has responded with a barrage of massive attacks targeting US bases, diplomatic facilities, and military personnel throughout the region, as well as several cities in Israel. The attacks continue to escalate.

On Sunday, March 8, the US and Israel launched air raids targeting Iranian oil storage facilities in Tehran and its surroundings.

The attack caused severe damage to a number of storage facilities, including the Shahran Oil Depot. As a result, world oil prices jumped to over $100 per barrel.