JPMorgan: Indonesia among most resilient countries to global energy price shocks
Thekabarnews.com—JPMorgan Chase, in its latest report, “Pandora’s Box: The Global Energy Shock of 2026,” identified Indonesia as one of the most resilient countries to global energy price shocks. The...
Thekabarnews.com—JPMorgan Chase, in its latest report, “Pandora’s Box: The Global Energy Shock of 2026,” identified Indonesia as one of the most resilient countries to global energy price shocks.
The report analyzes 52 of the world’s largest final energy-consuming countries. These countries represent around 82 percent of the global final energy consumption. The total protection factor is used as a measure of the countries’ resilience to the fluctuations of oil and gas prices.
South Africa was in the first position, with Indonesia in second. The index reflects the proportion of final energy that is most insulated from global price shocks. Indonesia is ranked third in the world for low dependence on oil and gas imports and overall energy resilience.
Much of Indonesia’s stellar performance is due to the availability of domestic energy resources. It is the world’s biggest exporter of thermal coal and one of the world’s top natural gas producers. Specifically, Indonesia produced about 2,465 billion cubic meters in 2024.
Indonesia is more shock-resilient thanks to its diverse energy sources. The country also has hydro, geothermal energy, and biodiesel apart from coal and natural gas. Diversification helps to reduce reliance on any single energy source and to buffer the impact of disruptions in world markets.
Indonesia can fulfill most of its energy requirements within its borders, thanks to one of the highest insulation factors in the world at 77 percent. In contrast, Indonesia is not a big importer of energy, unlike countries like Japan, South Korea, Singapore, and Taiwan.
But analysts warn that Indonesia remains structurally vulnerable despite such strengths. Domestic oil production continues to fall. The demand for energy is growing all the time. The country also faces currency risk due to its fuel imports in US dollars.
And then there is the question of energy subsidies. If energy prices stay high around the world, large government subsidies may be possible and threaten fiscal stability.
Italy, Spain, and the Netherlands were among the countries particularly vulnerable to shocks in global energy prices. Additionally, several Asian economies were also vulnerable, the report stated.
The ranking considered Indonesia’s resource endowment and policy framework, analysts said. But keeping that resilience will require sustained investment in diverse energy sources, efficiency, and sustainable infrastructure.
JPMorgan reported that Indonesia’s position is relatively strong but also reminded it to solve long-term issues. Indonesia seeks to strengthen its long-term energy security as global energy markets continue to fluctuate.
No Comment! Be the first one.