Jakarta. Indonesia has warned ASEAN to prepare for the “worst-case scenario”, as Jakarta urged Southeast Asian nations to embrace renewables amid the prolonged Iran war energy disruptions.

President Prabowo Subianto is joining his Southeast Asian counterparts for talks in Cebu aimed at navigating the oil shocks amid the Middle East tensions. The meeting mainly took place behind closed doors, where member states would take turns to deliver their national statements. 

According to a transcript of Prabowo’s speech provided by the Foreign Ministry, the Indonesian leader had made a grave warning that the energy pressure from the Iran clashes “does not seem to ease anytime soon”. He fears that the disruptions could be long-term.

“We must be ready for the worst-case scenario. We must reshape our energy architecture with utmost urgency. Energy diversification is no longer optional,” Prabowo said on Friday. 

“It is vital, it is necessary. We must move faster. We must go through alternative sources, and we must prepare renewables.” 

Prabowo went on to say how Indonesia had made “concrete steps” in its switch to renewables. 

As a case in point, the country is planning to expand its biodiesel program. Starting in July, Indonesia will raise the palm oil content in its biodiesel from the current 40% to 50% to cool down the fiscal pressures from the oil shocks. The sunny Indonesia wants to install 100 gigawatts of solar power, which Prabowo said would reach completion “within three years”. The resource-rich Indonesia is also tapping electric vehicles (EVs).

The group’s current chair, the Philippines, estimated that ASEAN had sourced 66% of its crude from imports. 

Earlier in the meeting, Philippine President Ferdinand Marcos Jr. had called on ASEAN to pursue “practical collective measures” to safeguard a stable energy supply. The group also has to "advance alternatives and renewable energy sources" to defend against further shocks.

The Philippines was the world’s first country to declare a national emergency after the Iran war erupted. The global crude benchmark Brent had repeatedly smashed through the $100-per-barrel barrier. Tehran has maintained its chokehold on the Strait of Hormuz in retaliation for US-Israeli airstrikes on Feb. 28. The narrow waterway carries a quarter of global seaborne oil trade.

ASEAN’s renewables share in its total primary energy supply hit 15.6% as of 2022. This figure, however, did not factor in Timor-Leste as Dili had only joined the Southeast Asian bloc last year.

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