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The Conversation

Denny Gunawan, Research Associate, ARC Training Centre for the Global Hydrogen Economy, Particles and Catalysis Research Laboratory, UNSW Sydney

Global tensions demand a faster energy transition — why does Indonesia still rely on fossil fuel imports?

Indonesia Oil Hydrogen PLN Electricity Renewable Energy The United States Ukraine ACWA Power China

The year 2025 begins with persistent global geopolitical tensions. The war between Ukraine and Russia drags on, conflict in the Middle East is heating up, and the United States-China trade war continues. All of this could send shockwaves through the global energy market — including in Indonesia.

Indonesia still relies heavily on imported crude oil and natural gas. In 2024, Indonesia spent US$36.28 billion on imported crude oil and natural gas — leaving it highly vulnerable to sudden price hikes caused by war or trade tariffs.

When war broke out in Ukraine in 2022, oil shot past US$100 a barrel — and Indonesia’s subsidy budget ballooned.

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