← Journal Articles

From Geopolitical Shockwaves to Strategic Resilience: Implications of the Geopolitical War for Indonesia’s National Food and Energy Security, and the Transformative Role of the Palm Oil Sector

July 23, 2026660 views

This journal discusses the impact of the 2026 Middle East geopolitical crisis on Indonesia's food and energy security, particularly due to the blockade of the Strait of Hormuz which disrupts the supply of oil, fertilizers, and global food commodities. Through a qualitative literature review of literature from 2020–2026, this study shows that Indonesia faces dual vulnerabilities: oil price increases above the state budget assumptions, disruptions in phosphate and potassium fertilizer supplies, and food inflation that pressures purchasing power. On the other hand, the palm oil sector is seen as a strategic asset because it plays a role in stabilizing cooking oil and strengthening energy through the B35–B40 biodiesel mandate, which reduces diesel imports and saves foreign exchange. The implication is that Indonesia needs to strengthen cross-sectoral palm oil governance, maintain the balance of food-energy allocation, diversify fertilizer imports, and accelerate the bioenergy transition to make national resilience more adaptive to geopolitical shocks.