Indonesia Boosts US Oil Imports Amid Middle East Tensions, Considers 4-Day Workweek to Cut Fuel Use
Jakarta – Indonesia is increasing its crude oil imports from the United States as escalating conflict in the Middle East threatens global oil supplies. The move comes as the government also explores options to reduce domestic fuel consumption, including a potential shift to a four-day workweek.
Increased Reliance on US Oil
Energy and Mineral Resources Minister Bahlil Lahadalia announced the increased imports from the US, citing the need to secure supplies amidst the ongoing conflict involving the United States, Israel, and Iran [Reuters]. Currently, Indonesia imports 7.6 million barrels of LPG, with 70-72% sourced from the US, approximately 20% from the Middle East, and the remainder from other countries.
To mitigate potential supply disruptions from the Middle East, Indonesia is also securing additional supplies from countries like Australia, with two cargoes expected to arrive later this week [Jakarta Globe].
Exploring a 4-Day Workweek
The Indonesian government is evaluating the feasibility of a four-day workweek, or expanded remote work options, as a means to curb fuel consumption. While no formal plans are yet in place, Minister Lahadalia stated that authorities are reviewing alternatives to reduce reliance on fossil fuels and improve energy efficiency [Jakarta Globe]. This consideration follows a similar move by the Philippines, which recently implemented a four-day workweek as part of its energy-saving initiatives.
Domestic Fuel Production and Reserves
Indonesia’s diesel supplies are currently stable, sourced entirely from domestic production. The recent inauguration of the Balikpapan Refinery Development Master Plan (RDMP) in January 2026 has boosted domestic fuel production capacity, reducing gasoline imports by up to 5.5 million tons and diesel by 3.5 million tons.
Yet, some gasoline needs are still met through imports from Malaysia and Singapore. Minister Lahadalia emphasized the importance of developing domestic refineries to further increase self-sufficiency in fuel production.
Fuel Stock Adequacy
Minister Lahadalia assured President Prabowo Subianto that fuel and LPG stocks are adequate ahead of Idul Fitri 2026. Reserves for Special Assignment Fuel Type (JBKP) RON 90 are currently at 24.39 days, exceeding the minimum requirement. Reserves for General Fuel Type (JBU) RON 92 and RON 98 are at 28 and 31 days respectively. Subsidized diesel reserves stand at 16.41 days, with CN 53 diesel at 46 days and Avtur at 38 days [Jakarta Globe].
Regional Energy Concerns
The escalating conflict in the Middle East is causing broader concerns across Asia regarding energy security. The region relies heavily on Middle Eastern oil, with Asia sourcing approximately 60% of its oil from Middle Eastern producers [ABC News]. Disruptions to supply could significantly increase oil prices, putting pressure on governments and economies throughout the region.