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• 5 min read • Indonesia

Two Pertamina Tankers Caught in Iran Conflict Paralysis as Indonesia Scrambles for Alternative Fuel Supply

Two Pertamina tankers became stranded in the Strait of Hormuz shipping paralysis caused by the Iran war, prompting Jakarta to secure US crude oil as an alternative supply while the government prepares contingency measures.

Introduction

Two Pertamina tankers became caught in the Strait of Hormuz shipping paralysis as the Iran war disrupts global energy flows, leaving Indonesia — the world’s fourth most populous nation — scrambling to secure alternative fuel supplies. Jakarta has already designated US crude oil as a substitute source, while Energy Minister Bahlil Lahadalia announced measures to accelerate the country’s fuel-to-electric transition amid the crisis.

The Stranded Tankers

The two Pertamina tankers were en route through or near the Strait of Hormuz when Iran effectively shut down the waterway following the US-Israeli strikes that began on February 28. With daily ship transits plummeting from 138 to fewer than 5, the tankers found themselves caught in what the International Energy Agency has called “the largest disruption to global energy supplies in history.”

Pertamina, Indonesia’s state-owned energy company, has not disclosed the exact cargo or current position of the vessels for security reasons. However, officials confirmed that the disruption has forced the company to seek alternative supply routes.

Indonesia’s Fuel Vulnerability

Indonesia’s dependence on imported crude oil makes it particularly vulnerable to Hormuz disruptions:

  • Crude imports: Significant portion flows through the Strait of Hormuz from Middle Eastern suppliers
  • Domestic production: Insufficient to meet demand — Indonesia is a net oil importer
  • Strategic reserves: Limited compared to larger economies
  • Pertamina refining: Relies on a mix of domestic and imported crude

The government has identified US crude oil as an immediate alternative, with Energy Minister Bahlil Lahadalia stating that preparations are underway to accelerate the fuel-to-electric transition as a longer-term solution.

Government Response

Indonesian officials have taken several steps:

  1. US crude designation — Named American crude as substitute supply source
  2. Accelerated electrification — Bahlil announced measures to speed up fuel-to-electric vehicle transition
  3. Central bank hold — Bank Indonesia kept its benchmark interest rate unchanged while adopting a “more hawkish tone” to monitor inflation risks from oil price surges
  4. Diplomatic engagement — Indonesia maintaining its “independent and active” foreign policy, refusing to join any military alliance in the conflict

Economic Implications

The fuel disruption comes at a sensitive time for Indonesia’s economy:

  • Inflation risk: Rising fuel costs could push consumer prices higher
  • Rupiah pressure: Energy import costs increasing amid global uncertainty
  • Budget strain: Government may need to increase fuel subsidies
  • Transport costs: Logistics and shipping fees rising across the archipelago

Two Pertamina Tankers Caught in Conflict

Indonesia’s fuel supply chain faces direct exposure to the Iran conflict. Two Pertamina tankers are caught up in the Iran conflict-induced shipping paralysis, though Jakarta has already named US crude as an alternative supply source to mitigate the disruption.

The situation underscores the vulnerability of Southeast Asian economies to Middle Eastern energy disruptions and the urgency of diversifying both fuel sources and transportation routes.

Sources