ASIATODAY.ID, JAKARTA — Australia has sharply increased liquefied petroleum gas (LPG) exports to Indonesia as disruptions linked to the closure of the Strait of Hormuz force Asian economies to seek alternative energy supplies, highlighting growing regional cooperation amid heightened geopolitical tensions.
The Australian Embassy in Jakarta said LPG shipments from Australia to Indonesia have risen at least threefold in 2026 compared with the previous year, helping offset supply shortages caused by disruptions to Middle East energy exports.
The additional cargoes are being supplied by the Ichthys Project, operated by INPEX in Western Australia and the Northern Territory, providing Indonesia with critical fuel supplies as global energy markets adjust to one of the most significant supply chain disruptions in recent years.
Australian Ambassador to Indonesia Rod Brazier said the development demonstrated the resilience of bilateral trade ties during a period of global uncertainty.
“When disruptions in the Middle East affect global supply chains, Indonesia and Australia are supporting each other through increased Indonesian urea exports to Australia and additional Australian LPG supplies to Indonesia,” Brazier said in a statement quoted on June 25.
Indonesia’s Foreign Ministry also welcomed the growing energy cooperation, describing it as evidence of the two countries’ long-standing partnership and their shared commitment to strengthening energy security and supply chain resilience.
The Strait of Hormuz, a vital artery for global energy shipments, has traditionally handled a significant share of the world’s LPG exports. Disruptions along the route have prompted import-dependent economies across Asia to diversify supply sources and strengthen regional energy partnerships.
Australian officials said the Ichthys Project also reflects the deep industrial links between the two countries, with key infrastructure components manufactured in Batam, Indonesia.
Analysts say the surge in Australian LPG exports underscores a broader shift in regional energy trade patterns as governments and businesses seek more reliable supply chains amid growing geopolitical risks.
The latest increase in energy cooperation is expected to further strengthen economic ties between Australia and Indonesia, two key Indo-Pacific partners seeking to enhance resilience against future supply shocks. (AT Network)
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