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Indonesia Shielded Against Energy Crisis

Indonesia Shielded Against Energy Crisis

Source: CNBCIndonesia.com | September 14, 2026

Indonesia has established several buffers to ensure fuel availability, rendering the country virtually immune to energy crises.

In the report Pandora’s Bog: The Global Energy Shock of 2026, Indonesia is ranked among the nations best protected against global oil and gas price shocks. In terms of the “total protection factor,” Indonesia holds second place, trailing only South Africa.

The government is also equipped with intervention tools to mitigate the impact of global energy price spikes, ranging from fuel and electricity subsidies to the coal Domestic Market Obligation (DMO) policy. Through these mechanisms, global price volatility is not immediately passed on to the public.

One of Indonesia’s most significant buffers is its domestic energy sources. In the primary energy mix, coal remains dominant at 40.37%, followed by crude oil (28.82%), natural gas (16.17%), and new and renewable energy (14.65%).

A key mitigating factor is the government’s decision not to immediately raise subsidized fuel prices when global oil prices surge.

The government utilizes the state budget (APBN) as a shock absorber, preventing global oil price increases from being directly passed on to consumers. To date, the government has not raised the prices of subsidized fuels, including Pertalite and diesel.

Another measure being taken is the diversification of crude oil import sources by Pertamina, including sourcing supplies from the United States and regions outside the Middle East.

The President’s Special Envoy for Energy and the Environment, Hashim Djojohadikusumo, previously stated that Indonesia had secured 150 million [units/barrels] of crude oil from Russia at a special price. Hashim noted that this specially priced oil supply was the result of President Prabowo Subianto’s visit to meet President Vladimir Putin at the Kremlin in Moscow on Monday (April 13, 2026). “Indonesia has now secured a commitment from the Russian government to store 150 million barrels of oil within the country to buffer against economic volatility,” said Hashim during the ‘Economic Briefing 2026’ event at Menara Patra Jasa, Jakarta, some time ago.

The government is also accelerating the diversification of fuels based on domestic resources to reduce reliance on energy imports. One such initiative is the B40 program, which increases the palm oil-based biodiesel blend in diesel fuel.

This policy allows a portion of diesel demand to be met using domestic raw materials, thereby curbing dependence on diesel imports. PT Pertamina Patra Niaga aims to have diesel fuel containing a 50% palm oil-based biodiesel blend (B50) available at all its gas stations by September 2026. Currently, 82% of Pertamina gas stations are already distributing B50, following the start of its implementation on July 1, 2026.

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