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Indonesia diversifies energy sources to reduce Middle East dependence

Amid tensions in the Middle East, the government has moved to find alternative supply sources to replace those from the region, and we have secured them,Jakarta (ANTARA) – Indonesia is diversifying energy sources to secure fuel supply amid Middle East tensions, with imports from the region accounting for about 20 percent, Energy and Mineral Resources Minister Bahlil Lahadalia said on Tuesday.Bahlil said the policy aims to reduce reliance on a single region while strengthening national energy resilience as global geopolitical risks persist.”Of our total fuel demand, imports from the Middle East account for around 20 percent,” he said during a virtual press conference monitored from Jakarta.He added that the government, under President Prabowo Subianto’s direction, has secured alternative supply sources from other countries to anticipate potential disruptions.”Amid tensions in the Middle East, the government has moved to find alternative supply sources to replace those from the region, and we have secured them,” Bahlil said.Indonesia is also boosting domestic output through refinery projects, including the Refinery Development Master Plan (RDMP) in Balikpapan, with capacity of 5.6 million kiloliters of gasoline and approximately 4.5 million kiloliters of diesel.Energy imports will continue to be dominated by crude oil, while fuels such as RON 90, 92, 95, and 98 are partly supplied domestically and partly main sourced from Southeast Asia, he said.For liquefied petroleum gas (LPG), Indonesia has begun shifting supply sources outside the Middle East, including from the United States, as part of its diversification strategy.”God willing, supply is clear and there are no issues,” he said.Separately, Bahlil noted that Indonesia’s energy import volumes will remain unchanged under a US$15 billion trade deal with the United States, focusing on shifting supply sources rather than increasing quotas.Indonesia requires 8.3 million tons of LPG annually, with domestic production at 1.6 million tons, leaving around 7 million tons to be met through imports, alongside fuel and crude oil.The agreement includes planned imports of LPG worth about US$3.5 billion, crude oil valued at around US$4.5 billion, and refined fuel products totaling roughly US$7 billion, in line with domestic demand and market pricing.