Amidst the escalating tensions between Iran-Israel in the Middle East, global concerns are on the rise. The conflict between these two nations has sparked worries worldwide, particularly regarding the impact on oil supplies, with Indonesia also facing potential repercussions. In response, the Ministry of Energy and Mineral Resources (ESDM) has devised a strategic plan to ensure domestic oil supply stability.
Tutuka Ariadji, the Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM), revealed that the government, in collaboration with Pertamina, is actively seeking alternative energy sources from regions unaffected by the geopolitical tensions in the Middle East. This proactive approach aims to secure reliable energy reserves for Indonesia amidst the uncertainty.
“With contracts secured until May and further planning underway for the remainder of the year, Pertamina is exploring diverse avenues to maintain a steady supply of LPG and fuel oil,” stated Tutuka during a CNBC Indonesia Energy Corner event, quoted on Monday (22/4/2024).
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Highlighting the importance of securing domestic oil supplies, Tutuka emphasized the government’s openness to exploring additional sources, including those in West Africa. Countries like Gabon, alongside Nigeria, present promising opportunities for expanded partnerships to bolster Indonesia’s energy security.
As the Iran-Israel conflict intensifies, global oil prices have surged, triggered by reports of Israeli airstrikes on Iranian targets. Refinitiv data revealed significant price spikes, with Brent crude oil jumping by 3.5% to US$90.14 per barrel and West Texas Intermediate (WTI) crude oil rising by 3.61% to US$85.80 per barrel.
Warren Patterson, ING’s head of commodity research, acknowledged the unconfirmed reports of explosions in the Middle East, signaling potential retaliatory actions in response to Iran’s recent drone and missile attacks.
The unfolding situation underscores the need for strategic measures to mitigate risks and ensure stability in global oil markets. As Indonesia navigates these challenges, collaboration between government agencies and industry stakeholders remains crucial to safeguarding the nation’s energy interests and economic well-being amidst geopolitical uncertainties in the Middle East.
