Jakarta (ANTARA) - Indonesia is considering alternative crude oil suppliers from Africa and Latin America due to escalating conflicts in the Middle East, Energy and Mineral Resources Minister Arifin Tasrif stated on Friday.
"We can contemplate African countries as their shipping routes to Indonesia avoid the Middle East," he said, specifically mentioning Mozambique as one of these countries.
Indonesia is also exploring oil-exporting countries in Latin America.
"Given Venezuela's international sanctions, perhaps we can explore opportunities with Guyana," he added.
In addition to crude oil, Indonesia is seeking new sources of liquified petroleum gas (LPG). The country will prioritize suppliers whose shipping routes avoid conflict-prone regions.
"We observe that shipping routes from Australia or countries in the Americas do not intersect with these regions," Tasrif said.
However, opting for alternative suppliers from Africa or the Americas comes with consequences, including increased shipping costs due to longer distances to Indonesia.
"The costs will skyrocket, affecting everything," he emphasized.
Recent hostilities between Iran and Israel have raised concerns about conflict escalation and the potential for a full-scale war, which would inevitably impact global trade.
Director General of Oil and Gas, Tutuka Ariadji, highlighted the critical role of the Strait of Hormuz in maintaining global oil stability. Thousands of vessels carrying millions of barrels of oil traverse the strait daily.
"The strait is controlled by Iran, which holds the decisive factor," he said.
In response, Indonesia's state-owned oil and gas company Pertamina must take measures to secure the commodity supply line for domestic use, Ariadji added.
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Translator: Putu Indah S, Nabil Ihsan
Editor: Anton Santoso
