Indonesia
Southeast Asian archipelago: world's largest Muslim-majority nation, key G20 oil importer.
Last refreshed: 30 March 2026
Can Indonesia's non-aligned posture survive a Gulf war reshaping its oil supply routes?
Latest on Indonesia
- What is Indonesia's role in current events?
- Indonesia is a key non-aligned G20 state facing indirect consequences from the Iran-Israel-US conflict. As a major Gulf oil importer and a nation with a large maritime workforce, Jakarta is exposed to rising energy costs and the seafarer repatriation crisis flagged by the IMO in March 2026.Source: IMO
- How does the Iran war affect Indonesia's oil supply?
- Indonesia is a net oil importer and sources significant volumes from Gulf producers. Disruption to Strait of Hormuz shipping routes and the surge in Brent Crude prices driven by the Iran conflict have raised energy import costs for Jakarta, threatening its energy subsidy budget.Source: Lowdown
- Why are Indonesian seafarers stranded in the Gulf?
- The IMO warned in March 2026 that approximately 20,000 seafarers were trapped in Gulf and Arabian Sea waters with no repatriation route as the Iran conflict disrupted commercial shipping. Indonesia's large maritime labour force makes it one of the most affected nations.Source: IMO
- Does Indonesia control the Strait of Malacca?
- Indonesia is one of three littoral states of the Strait of Malacca, alongside Malaysia and Singapore. The strait carries roughly 40 per cent of global seaborne trade, making Indonesia a critical chokepoint state for world shipping, including Gulf oil destined for East Asia.Source: Lowdown
- Is Indonesia aligned with the US or China in the Iran conflict?
- Indonesia has maintained a non-aligned stance. Jakarta has not endorsed the US military campaign against Iran, but it has also not broken with Washington. Its position mirrors its broader Foreign Policy of strategic autonomy, though the economic pressure of the Gulf crisis is testing that balance.Source: Lowdown
Background
Indonesia is the world's largest archipelago state, spanning 17,000 islands across Southeast Asia with a population of 280 million. As the world's largest Muslim-majority nation and a founding member of ASEAN, it occupies a pivotal position astride the Strait of Malacca, through which roughly 40 per cent of global seaborne trade passes. Indonesia is a significant G20 economy and one of the largest importers of Middle Eastern crude oil.
The Iran-Israel-US conflict has placed Indonesia under indirect but real pressure. Indonesia imports substantial volumes of Gulf crude; as Brent Crude prices surged and tanker routes through the Strait of Hormuz were disrupted, Jakarta faced rising energy costs. The IMO warned in March 2026 that approximately 20,000 seafarers were stranded in Gulf waters with no repatriation route, a crisis with direct relevance to Indonesia's large maritime workforce .
Indonesia's non-aligned tradition, its Straits geography, and its oil dependence place it at the intersection of every pressure the conflict generates. Jakarta cannot afford to antagonise Iran, China, or the United States, yet each actor is pulling in a different direction. How Indonesia manages this triangulation will test whether its strategic autonomy is a durable posture or a luxury of calmer times.
