1,5 min read –
Indonesia’s Energy Resilience –
Shines Amid Global Turbulence –
As geopolitical tensions in the Middle East escalate with the ongoing conflict involving Iran and disruptions in the Strait of Hormuz, many nations face :
– surging energy prices
– supply shortages
– economic strain
Yet Indonesia stands out as a pillar of stability.
According to J.P. Morgan Asset Management’s “Eye on the Market” report released in March 2026 :
Indonesia ranks second globally in energy resilience among 52 major energy-consuming countries, with an insulation factor of 77%.
This ranking, still highly relevant today, reflects Indonesia’s structural advantages:
– abundant domestic resources
– and limited dependence on vulnerable import routes
Domestic coal meets roughly 48% of final energy consumption, and natural gas around 22%.
Critically, oil and gas imports through the Strait of Hormuz represent just 1% of Indonesia’s primary energy consumption.
A stark contrast to far more exposed economies like South Korea (33%) or Singapore (26%).
The Indonesian government has prioritized domestic supply, directing producers to favor local needs over exports where necessary.
This approach helps shield industries, maintain affordable energy for households, and support fiscal stability despite global pressures.
Coordinating Minister Airlangga Hartarto noted that such resilience offers greater flexibility for the 2026 State Budget while protecting purchasing power and business continuity.
Policymakers continue boosting domestic oil and gas production to narrow the trade deficit.
Diversification of supply sources and logistics further mitigates geopolitical risks.
These balanced policies, leveraging strengths in coal and gas position the country for both short-term stability and long-term growth.
In an era of heightened uncertainty, the archipelago offers a large, resource-rich market with robust domestic supply chains, pro-investment reforms, and strategic commodities (nickel, copper, bauxite, tin, …).
Economic growth remains solid, underpinned by energy security that many peers lack.
While challenges persist, Indonesia’s performance amid the 2026 energy crisis demonstrates a mature, pragmatic approach.
It is a compelling destination for investors and exporters seeking stability, scale, and sustainable opportunity in Southeast Asia.
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Picture: Gemini
Sources: Antaranews, Reuters, Grok