Indonesia, Australia Boost Energy Ties Amid Global Disruptions

  • 23 Jun 2026 11:16 WIB
  •  Voice of Indonesia
Key Points
  • Indonesia and Australia are expanding energy cooperation as supply disruptions linked to the Middle East crisis reshape global energy markets and increase the need for reliable regional partnerships.
  • Australian LPG shipments to Indonesia have tripled in 2026, while Indonesian urea exports to Australia have risen.

RRI.CO.ID, Jakarta - Indonesia and Australia are reinforcing their energy partnership as global supply chains face increasing pressure from disruptions in the Middle East, with both countries stepping up trade in key energy-related commodities.

Australian Ambassador to Indonesia Rod Brazier said the growing exchange of energy supplies demonstrates the importance of the strategic relationship between the two neighbors during a period of global uncertainty.

“When disruptions in the Middle East affect global supply chains, Indonesia and Australia support one another through increased Indonesian urea exports to Australia and higher LPG supplies from Australia to Indonesia,” Brazier said in a statement released by the Australian Embassy in Jakarta on Monday, June 22, 2026, as quoted by Antara.

Australia has increased liquefied petroleum gas (LPG) deliveries to Indonesia in recent months to help offset supply shortages caused by disruptions to energy flows from the Middle East.

The situation has been linked to the closure of the Strait of Hormuz, a key global shipping route and one of the world's major LPG supply corridors.

According to the Australian Embassy, LPG cargo shipments from Australia to Indonesia have increased at least threefold in 2026 compared to 2025, helping Indonesia secure supplies during a critical period.

Indonesian Foreign Affairs Ministry official for Asia-Pacific and Africa policy strategy, Vahd Nabyl Achmad Mulachela, said the cooperation reflects the strength of bilateral ties and the shared commitment to improving energy security.

“This demonstrates how both countries can work together to strengthen energy resilience, enhance supply chain security, and advance mutual economic interests,” he said.

The additional LPG supplies are sourced from the Ichthys Project, operated by INPEX in Western Australia and the Northern Territory.

The project also highlights industrial cooperation between the two countries, with key infrastructure components manufactured in Batam, Indonesia, underscoring the close links between Australia’s offshore energy sector and Indonesia’s manufacturing industry. ***

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