Arsari Tambang reveals threat of diesel crisis amid Middle East conflict

JAKARTA, investorstrust.id — Arsari Tambang President Director Aryo Djojohadikusumo revealed the main challenges of the mining and metallurgical industry amid Iran-Israel/US geopolitical unrest, particularly regarding the supply and availability of diesel for mining operations.

Aryo said this challenge was not only faced by the tin industry, but also other metal sectors, such as copper, aluminum and nickel. He said diesel is an important component in heavy equipment operations and mining production processes.

“We see that many neighboring countries, such as India, Pakistan and countries in Africa, are facing production difficulties due to shortage of diesel. No matter the price, it is really difficult to get it,” Aryo said after the MetConnex 2026 event at the Jakarta International Convention Center (JICC), Tuesday (12/5/2026).

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Meanwhile, Aryo said, Indonesia’s biodiesel program is helping the mining industry cope with global pressure. The program, he continued, began during the era of the 7th President of the Republic of Indonesia Joko Widodo (Jokowi) and was continued by the 8th President of the Republic of Indonesia Prabowo Subianto.

“We are grateful that the availability of biodiesel is helping us address this global challenge. Because of diesel, I cannot emphasize enough its importance in mining operations,” he said.

Aryo pointed out what happened provideshock which requires mining companies to quickly adapt to changing prices and global market conditions.

Aryo said a number of industry players in the Middle East believe geopolitical unrest will continue until the end of 2026. He said political dynamics in the United States, including the November 2026 legislative elections, could influence conflict resolution in the Middle East.

“Honestly, many friends in the Middle East, in Abu Dhabi, Dubai, Bahrain, Qatar and elsewhere, say that it is possible that this will continue until the end of the year. Why the end of the year? Yes, we will see for ourselves, in America there will be elections for the DPR in November 2026. If the Republican Party loses, that could put pressure on Donald Trump to actually solve what is happening in the Middle East,” he declared.

On the other hand, Aryo said, Arsari Tambang encourages the downstream of the tin industry through development. Tin Research Center in the Bangka Belitung Islands.

According to him, one of the high value-added products in the tin industry is weldstick used in the semiconductor industry. “Solderstick “This is what is used for semiconductors used by Nvidia, Intel and others,” Aryo explained.

On this subject, Aryo highlighted the development weldstick requires large investments in research and development because this technology has never been developed in Indonesia. “That’s why Arsari Tambang took the initiative to build it Tin Research Centeror the tin study center that we are going to build in Bangka Belitung,” he explained.

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He added that the research center should support downstream as well as investments in research and national intellectual property.

On this occasion, Aryo also assessed that the MetConnex 2026 event has opened opportunities for greater collaboration between mining companies and global partners, especially in the development of automation and artificial intelligence (artificial intelligence/AI), electrification, the use of heavy electrical equipment.

According to him, collaboration between industry players can accelerate the adoption of technologies and increase the efficiency of the domestic mining industry. “If we know how much we need, we can collaborate with foreign suppliers, gain efficiency, get bigger discounts, the Indonesian mining industry will be much more efficient,” concluded Aryo.