Jakarta. President Prabowo Subianto’s brother Hashim Djojohadikusumo recently said global oil prices rest in US leader Donald Trump’s hands, as crude kept climbing above $100 a barrel. 

Speaking at the Investor Daily Summit, Hashim  — who is also the president’s climate envoy — said that Indonesia had “strong fundamentals” as he once again tried to assuage public pessimism over the economy. He went on to name oil prices as the only obstacle that Jakarta is facing.

“Neither the Indonesian government nor OPEC set the oil price,” Hashim said, referring to the oil cartel of Arab nations.

“It’s President Donald Trump who can do so. If he stops the war with Iran, the oil price will drop.”

Hashim — a seasoned businessman who runs an oil business under his Arsari Group — then told the forum in jest that he would be “kind of sad” when crude prices fall. He added: “But I suppose that’s okay. I can still make money.” 

“Let's not be influenced by those social media posts of a 'dark Indonesia'. It's actually bright, even more so once the Hormuz reopens.”

Around a fifth of the world’s oil freely passed through the waterway before the US and Israel launched a surprise attack in Tehran in late February. 

Since then, Iran has taken advantage of its geographic location to block passages in retaliation, fueling price hikes across the globe. 

The global crude benchmark Brent stays high above the $100 per barrel threshold as the US-Iran talks hit an impasse. Trump had also repeatedly declared the Hormuz as a US “territory”.

Two Indonesian oil tankers were even trapped in the Hormuz Strait for months in the aftermath, although these vessels had made it back home. The disruptions also prompted Indonesia to seek Russian crude as an alternative.

According to Chief Energy Transition Minister Bahlil Lahadalia, Indonesia’s oil demand amounts to 1.6 million barrels per day, but some 1 million barrels come from imports. In addition to beefing up lifting, Indonesia is tapping into its palm oil abundance to produce biodiesel to narrow the gap. The country has even mandated a 50% palm oil-based blend in the diesel sold at its pumps as part of a policy known as B50.

“With B50, I’m confident we can stop importing diesel fuel with the C48 [Cetane 48] specification this year,” Bahlil told the same conference.

Add as a preferred source on Google +