InfoSAWIT, BOGOR – Indonesian President Prabowo Subianto reaffirmed the strategic role of palm oil as a national alternative energy source amid global geopolitical uncertainty. The statement was delivered during a gathering with senior journalists and analysts at his private residence in Hambalang, Bogor, West Java, on Thursday (March 19, 2026).
Prabowo emphasized that Indonesia holds a major advantage as the world’s largest palm oil producer, with the capability to process palm oil into various types of fuel.
“I’ve been mocked as the ‘palm oil president,’ but I’m proud of it. From palm oil, we can produce diesel, gasoline, even aviation fuel. We are in a better position than many countries,” he said.
He added that downstreaming palm oil into renewable energy represents a key strategic strength for Indonesia in navigating global energy volatility.
Geopolitical Risks and Call to Reduce Fuel Consumption
Prabowo also warned about escalating geopolitical tensions, particularly in the Middle East, which could trigger a sharp increase in global oil prices.
He outlined a worst-case scenario involving disruptions to global energy supply routes, including the Strait of Hormuz.
“We must be prepared for the worst-case scenario. If escalation happens and supply routes are disrupted, oil prices could reach US$200 per barrel,” he stated.
As a precautionary measure, Prabowo urged all stakeholders to reduce reliance on fossil fuels and accelerate the adoption of domestically sourced alternative energy, including palm oil-based fuels.
High Oil Prices Burden National Economy
Prabowo noted that global oil prices currently remain high, fluctuating between US$100 and US$112 per barrel.
Based on expert assessments, he said that Indonesia begins to feel significant economic pressure when oil prices exceed US$90–95 per barrel.
“If oil prices go above US$90 to US$95, it becomes heavy for us,” he remarked.
The statement highlights the urgency of national energy diversification, with palm oil positioned as a key solution to strengthen energy security and mitigate the impact of volatile global oil prices.
With its abundant natural resources and downstream strategy, Indonesia is seen as having strong potential to enhance energy independence amid increasingly complex global pressures. (T2)
