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View all search resultsIndonesia has the capacity and potential to achieve resilience across the economic board, especially at this tough time; all it need do is stand up and take the bull by the horns.
ountries across the world, Indonesia among them, are being forced to acknowledge that they have long been on thin ice as regards energy security.
While the Strait of Hormuz was known to be a choke point for global oil and gas supplies, the risk was theoretical. Now faced with actual shortages, governments are being pressed to present their crisis strategies, and many appear to have none.
Sticking to the analogy above, they’d been walking confidently across a frozen lake and are only now noticing the water rushing beneath their feet.
Indonesia quickly announced plans to expand fuel storage capacity and is courting investors for new crude storage. Though these efforts will do nothing to ease the current supply crunch, they are important for anticipating the next one.
The war in the Middle East, sparked by the coordinated United States-Israeli attacks on Iran, reveals how dependent many countries are on imports, not only of energy but also of other materials, such as fertilizer inputs ammonia and urea. Indonesia’s nickel processing industry relies heavily on sulfur shipments from the region
With oil imports, food production and critical mineral processing impacted, the Mideast crisis is affecting strategic industries, revealing Indonesia’s economic vulnerability to global trade disruptions.
This is part of the wider problem of increasingly fickle supply chains, because governments have become more comfortable over the past five years or so with restricting imports and exports of specific goods and services on short-term considerations.
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