“And when something like this happens – a war happens and a trade route like the Strait of Hormuz is closed with all the attendant effects – we have somewhere to immediately run to for emergency supply,” he added.
Regional cross-border electricity interconnectivity and energy diversification were also discussed at the summit.
Separately, Bahlil also announced plans for a domestic oil storage facility in a Sumatra special economic zone to raise its national reserves, adding that the Sumatra project would proceed even if Indonesia is not chosen to host the ASEAN hub.
Plans for the Sumatra project are still in the feasibility stage, he added.
The ongoing war between Iran and the United States and Israel has entered its 11th week amid a fragile ceasefire and the continued closure of the Strait of Hormuz, which normally carries one-fifth of the world’s oil and gas supply.
Oil prices surged on Monday after US President Donald Trump said the ceasefire in Iran was on “life support” after Tehran’s response to the US’ proposal to end the war.
Earlier on Mar 4, Bahlil reportedly said that the energy ministry conducted a feasibility study for an oil strategic facility on Nipa Island among the Riau islands, and aims to begin construction this year, according to Indonesian energy news outlet Petromindo.com.
Bahlil added that the storage development plan was reported to Prabowo, who advised that the plan be implemented as soon as possible, reported Petromindo.
“This is about survival. If we want energy security, we must address the core issues quickly so we do not remain dependent,” Bahlil was quoted as saying, adding that investors had already been secured, with funding coming from domestic and international sources, excluding the US.
