Strait of Hormuz Closed, Indonesia Eyes US Crude Oil

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TEMPO.CO, Jakarta - Indonesia's Energy and Mineral Resources Minister Bahlil Lahadalia stated that the government is preparing for a worst-case scenario if the current war in the Middle East has no definite end date. This is because 20-25 percent of Indonesia's crude oil supply comes from the region.

"Let's say it's slow, the current scenario is that we'll divert some of the crude we source from the Middle East to America, to ensure the availability of our crude," Bahlil said at a press conference at the Ministry of Energy and Mineral Resources in Jakarta, Tuesday, March 3, 2026.

Bahlil said that crude oil supplies, aside from the Middle East, come from various African countries, Brazil, and the United States (US). Due to the ongoing war between the United States and Israel and Iran, the government has diverted some supplies from the Middle East to the United States.

This decision was made considering the possibility of the Strait of Hormuz, a key global trade route, being closed indefinitely.

"We are confident, after conducting a study, that we cannot predict when this will end," Bahlil said.

According to Bahlil, imported fuel oil (BBM) with Research Octane Numbers (RON) of 90, 92, 95, and 98 is purchased from countries in Southeast Asia and outside the Middle East, thus safeguarding against the threat of supply disruptions. Diesel fuel stocks are also guaranteed to be secure as there will be no further imports this year.

Regarding the supply of Liquefied Petroleum Gas (LPG), Bahlil stated that imports total 7.3 million metric tons per year, increasing to 7.8 million metric tons this year. This year, 70 percent of imports are from the United States and 30 percent from the Middle East, such as Saudi Aramco—the Saudi Arabian oil and gas company.

Because Saudi Arabia's refinery area has been affected by the conflict, the government has diverted supplies. "The alternative is that we redirect our purchases to countries unconnected to the Strait of Hormuz," he said.

War between the United States and Israel and Iran broke out last Saturday. The two warring factions launched retaliatory attacks on defense systems and various other facilities.

Read: Asian Countries Hit by Strait of Hormuz Crisis due to Iran Conflict

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