Indonesia Highly Resilient to Global Energy Volatility: JPMorgan

RRI.CO.ID, Jakarta - Indonesia is considered to have strong resilience against global energy volatility, placing it among the world’s most resilient countries. The key factor lies in its relatively stable domestic energy structure.

This assessment was presented by JP Morgan, the US-based multinational financial services and investment banking firm, in its latest global report. The study analyzed 52 countries with the highest energy consumption, collectively accounting for 82 percent of global energy use.

Chairman of Market and Investment Strategy at JP Morgan Asset & Wealth Management, Michael Cembalest, noted that Indonesia ranks highly in global energy resilience.

“When low energy import dependency is combined with a high level of energy resilience, Indonesia’s position remains impressive at third globally,” Cembalest wrote in the report Pandora’s Bog: The Global Energy Shock of 2026, as quoted by Antara in Jakarta on Thursday, April 24, 2026.

In the Total Protection Factor indicator, which measures the extent to which a country is shielded from fluctuations in international oil and gas prices, Indonesia ranks second worldwide, behind only South Africa.

According to the report, Indonesia’s strength lies in its domestic energy production capacity. The country is the world’s largest exporter of thermal coal and the 13th-largest producer of natural gas, with output reaching approximately 2.465 billion cubic meters in 2024.

“Additionally, the diversity of the national energy mix, including hydropower, geothermal energy, and biodiesel, makes Indonesia’s energy system more resilient to volatility in any single commodity,” Cembalest wrote.

JP Morgan also highlighted Indonesia’s Insulation Factor, which reached 77 percent, reflecting a high capacity to meet energy needs from domestic sources. This figure far surpasses countries such as Japan, South Korea, Singapore, and Taiwan, which rely heavily on energy imports.

Nevertheless, several risks remain. These include declining domestic oil production, rising energy consumption, reliance on US dollar-based imports, and the potential for surging energy subsidies if global prices continue to climb. ***