Global Oil Prices Are Like 'Someone Suffering From Malaria,' Says Bahlil
Indonesia's Energy Minister Bahlil Lahadalia says volatile oil prices and Strait of Hormuz disruptions highlight the need for energy independence.
Energy and Mineral Resources Minister Bahlil Lahadalia compared global crude oil prices to someone suffering from malaria, highlighting their extreme volatility. He pointed to disruptions in the Strait of Hormuz, a vital shipping route responsible for 20% of global oil supplies, as a major driver of the recent surge in oil prices. Bahlil likened the price fluctuations to the disease's erratic patterns, falling and rising at various intervals.
According to Bahlil, the conflict's developments and narratives surrounding the Strait of Hormuz have significantly impacted oil prices. Indonesia, he noted, has been affected by the instability and is actively seeking to bolster its energy independence. Data from Trading Economics indicated that Brent crude was trading at approximately US$90 per barrel on Wednesday, a sharp drop from the US$114.44 per barrel seen on May 4, 2026, following the outbreak of the Israel-US war with Iran in late February.
The price had plummeted to around US$71 per barrel in early July. Bahlil emphasized President Prabowo Subianto's directive for the administration to explore new breakthroughs in alternative energy sources. The government aims to meet Indonesia's commitments under the Paris Agreement, targeting net-zero emissions by 2060.
To achieve this, Indonesia plans to develop 100 gigawatts (GW) of solar power plants over the next few years, with 30 GW targeted for construction this year. These projects are expected to lower the country's dependence on imported fuel while meeting its electricity needs. Currently, Indonesia consumes about 1.6 million barrels of fuel daily, with domestic oil production at 600,000 to 610,000 barrels per day.
Bahlil stressed the urgent need to minimize reliance on imports as part of the country's journey toward energy sovereignty.
Written by urgent.news from Tempo.co English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
