Indonesia's Fuel Supply Stable as Southeast Asia Reels from Iran Tensions

5 hours ago 4

TEMPO.CO, Jakarta - Indonesian fuel reserves and fiscal ability remain safe amidst global uncertainty triggered by the Middle East war. Conflict escalation between Iran, Israel and the US has disrupted the global supply chain, but Indonesia is expected to overcome the hurdles through strong economic fundamentals. 

"The national economy remains stable with solid fundamentals. Fuel stocks are secure and fiscal stability is maintained," Airlangga said at a virtual press conference in Jakarta on Tuesday, March 31, 2026, as quoted from Antara.

The government is implementing a work-from-home policy for civil servants every Friday as part of efforts to curb fuel use and improve efficiency.

Authorities will also cut official vehicle usage by up to 50 percent, excluding operational and electric vehicles, while domestic business travel will be reduced by 50 percent and international trips by 70 percent.

The work-from-home policy could save about Rp6.2 trillion (US$365 million) in the state budget from fuel compensation, while broader reductions in public fuel consumption may yield savings of up to Rp59 trillion.

State energy company PT Pertamina said there would be no adjustment in fuel prices, both subsidized and non-subsidized, in line with government directives.

He added the company's priority is ensuring energy availability and optimizing supply chains to guarantee nationwide distribution.

Pertamina Patra Niaga, the company's downstream arm, is taking strategic steps to maintain smooth energy distribution across the country.

Corporate Secretary Roberth M.V. Dumatubun said Pertamina Patra Niaga remains committed to implementing government policies, including those related to fuel pricing.

He added that supplier negotiations and distribution optimization are key strategies to ensure consistent energy availability for the public.

"We urge people to use energy wisely and avoid misinformation that could trigger panic buying," Roberth said.

Authorities also called on the public to rely on verified information and maintain normal consumption patterns to support stable energy distribution nationwide.

Meanwhile, across Southeast Asia, the escalation of conflict in the Middle East has sent waves of disruptions as fuel prices skyrocketed. 

In Singapore, diesel prices have surged past S$4 per liter, exceeding petrol prices, citing CNA. Just a couple months earlier in February, diesel prices were notably lower, between S$2.57 and S$2.66.

Singapore also recorded rising prices for cooking gas, according to The Straits Time, affected by higher fuel costs. 

A week prior, Philippines declared became the first in the region and the world to declare a national energy emergency over the oil crisis triggered by the Middle East war, with The Guardian reporting a 60 percent surge in fuel prices.

Manila also expects food prices to surge in the coming weeks as transport costs become more expensive after the current harvest season.

Read: Indonesia Assures Energy Supplies Secure as Philippines Declare Crisis

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