PALMOILMAGAZINE, BOGOR — Indonesian President Prabowo Subianto has underscored the strategic importance of palm oil as a key alternative energy source, as global geopolitical uncertainty continues to threaten oil market stability.
Speaking during a gathering with senior journalists and analysts at his private residence in Hambalang, Bogor, he emphasized Indonesia’s strong position as the world’s largest palm oil producer, capable of transforming the commodity into multiple forms of fuel.
Prabowo acknowledged criticism labeling him a “palm oil president,” but said he embraces the title with pride. He noted that palm oil can be processed into diesel, gasoline, and even aviation fuel, giving Indonesia a comparative advantage over many other countries.
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According to him, downstream development of palm oil into renewable energy products represents a strategic pillar for Indonesia in navigating global energy volatility.
Geopolitical Risks and Push to Cut Fossil Fuel Dependence
At the same time, Prabowo warned of escalating geopolitical tensions, particularly in the Middle East, which could disrupt global energy supply chains and drive oil prices significantly higher.
He highlighted a worst-case scenario involving disruptions in critical routes such as the Strait of Hormuz, a key artery for global oil distribution. In such a situation, he cautioned, crude oil prices could surge to as high as USD 200 per barrel.
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“We must be prepared for the worst-case scenario. If escalation occurs and distribution channels are disrupted, oil prices could reach USD 200 per barrel,” he said.
As a precaution, he called on 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 Weigh on National Economy
Prabowo also pointed to current global oil prices, which remain elevated at around USD 100–112 per barrel. Based on expert assessments, he noted that Indonesia begins to feel significant economic pressure when oil prices exceed USD 90–95 per barrel.
“If oil prices rise above USD 90 to 95 per barrel, it becomes a heavy burden for us,” he stated.
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The remarks reinforce the urgency of diversifying Indonesia’s energy mix, with palm oil positioned as a central solution to strengthen energy security while mitigating the impact of global oil price fluctuations.
With its abundant natural resources and ongoing downstream strategy, Indonesia is seen as having strong potential to enhance energy independence amid increasingly complex global pressures. (P2)
