Jakarta. Indonesia has eliminated its need to import diesel fuel through its palm oil-based biodiesel program, Energy and Mineral Resources Minister Bahlil Lahadalia said Monday, as escalating tensions in the Middle East threaten to further disrupt global energy supplies.

Bahlil warned that the widening conflict, including reported Houthi attacks on a Saudi Arabia airport, could intensify pressure on international oil shipments and energy security.

"Geopolitical tensions involving Iran, the United States and Israel have not subsided, and now the Houthis are also involved in Saudi Arabia. This will further disrupt logistics flows and global energy security," Bahlil said in Jakarta.

Indonesia remains heavily dependent on imported oil and petroleum products. With domestic oil production of approximately 600,000 barrels per day against consumption of about 1.6 million barrels per day, the country faces a supply gap equivalent to roughly 1 million barrels daily.

The figures illustrate Indonesia's continuing exposure to international energy markets, even as the government seeks to reduce imports of specific fuels.

Earlier disruptions associated with the conflict involving Iran and restrictions on shipping through the Strait of Hormuz have heightened those concerns. According to Bahlil, approximately 23% of Indonesia's crude oil supplies pass through the strategic waterway.

The latest escalation has reinforced the government's push to diversify crude oil suppliers, including exploring additional sources in Africa, to reduce reliance on shipments from the Middle East.

Biodiesel Program Aims to Cut Import Dependence
Bahlil pointed to Indonesia's B50 biodiesel program, which blends 50% palm oil-based biodiesel with 50% conventional diesel, as a key measure for strengthening domestic fuel security.

"We are grateful that, for diesel, we already have the B50 blending program using crude palm oil and diesel, so we no longer import diesel," he said.

Indonesia has long promoted palm oil-based biodiesel as part of its strategy to reduce petroleum imports, support domestic energy production and increase the use of locally produced agricultural commodities.

The B50 program represents a further increase in the share of biodiesel used in the country's diesel fuel supply.

However, the broader energy sector remains vulnerable to international price fluctuations and supply disruptions because Indonesia still relies on imported crude oil and other petroleum products.

Bahlil said the government would continue efforts to reduce that dependence by expanding domestic fuel alternatives and diversifying overseas sources of crude oil.

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