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Indonesia Says Domestic Output Can Cushion Oil Price Shock After Israeli Strike on Iran

Martin Bagya Kertiyasa
June 13, 2025 | 5:29 pm
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This undated photo shows a Pertamina Algeria EP (PAEP) worker working at the Menzel Ledjmet Nord (MLN) oil field in Algeria. (Photo Courtesy of Pertamina)
This undated photo shows a Pertamina Algeria EP (PAEP) worker working at the Menzel Ledjmet Nord (MLN) oil field in Algeria. (Photo Courtesy of Pertamina)

Jakarta. The Energy and Mineral Resources Ministry downplayed concerns over global oil price volatility following Israel’s military strike on Iran, stating that domestic oil production has exceeded expectations and can help shield the country from external shocks.

The comments from Deputy Energy and Mineral Resources Minister Yuliot Tanjung came after Brent crude futures surged more than 7 percent to $74.65 a barrel on Friday, driven by fears of supply disruption from Iran, one of the world’s top oil exporters, after Israeli warplanes hit targets reportedly linked to Tehran’s nuclear program.

West Texas Intermediate crude rose similarly, climbing 7.91 percent to $73.42 a barrel.

“Indonesia has a degree of energy resilience. We’re working to boost our oil and gas output to strengthen that buffer,” Yuliot said at the Energy Ministry’s office in Jakarta on Friday.

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Indonesia’s oil lifting, a measure of crude output ready for sale, hit 610,000 barrels per day (bpd) as of June, surpassing the 2025 state budget target of 605,000 bpd. The figure is also higher than the first-quarter average of 580,000 bpd, Yuliot said.

The increase in domestic production, he added, would help reduce the impact of global market turmoil on energy availability at home.

The Israeli airstrike, which targeted nuclear facilities and scientific installations in Iran, drew sharp condemnation across the Muslim world. The Iranian Embassy in Jakarta accused Israel of violating Iran’s territorial integrity and international law, labeling the attack an act of “brutal aggression.”

Iran responded by blaming Israel and its allies for any “dangerous consequences” and asserted it had a legal right under the UN Charter to retaliate. The country said its military was prepared to respond forcefully to defend its sovereignty.

Indonesia, the world’s largest Muslim-majority nation, also condemned the attack.

In a strongly worded statement, the Foreign Ministry in Jakarta warned that the airstrike could escalate tensions across the Middle East and urged all parties to resolve their disputes peacefully.

“Indonesia reaffirms the obligation of every state to resolve their differences through peaceful means in accordance with international law,” the statement read.

The conflict adds to growing geopolitical risks in global energy markets, which are already grappling with fragile supply chains and shifting demand dynamics in the post-pandemic recovery era.

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