By: Maskawi Syaifuddin *)
The Indonesian government continues to strengthen its steps towards energy self-sufficiency through the development of strategic infrastructure, such as power plants and oil refineries. This initiative is part of a national strategy aimed at enhancing energy resilience while supporting long-term development goals. To achieve this, the government collaborates with the private sector through various partnership schemes, including Public-Private Partnerships (PPP). This approach enables energy projects to proceed more effectively and efficiently while reducing the burden on the state budget. Through this strategy, Indonesia seeks to meet domestic energy needs, reduce dependence on imports, and solidify its position as an energy-independent nation.
One of the main focuses of this effort is the utilization of dams as energy sources through hydroelectric power plants (PLTA). Dams built in recent years are not only intended to provide water for irrigation or household needs but also hold significant potential as renewable energy sources. Deputy Minister of Public Works, Diana Kusumastuti, emphasized that dam construction should also be optimized for hydroelectric power plants (PLTA). Optimizing dams for PLTA is considered a strategic step to support energy self-sufficiency, aligning with national policies that emphasize innovation and efficiency in resource management. The utilization of hydropower also reflects a commitment to sustainable natural resource use, given Indonesia’s abundant rivers and regions with high hydroelectric potential.
To accelerate PLTA development, the government is implementing the PPP scheme for several existing dams. Director General of Infrastructure Financing for Public Works, Rachman Arief Dienaputra, stated that three dams are currently undergoing the PPP process: Tiga Dihaji Dam in South Sumatra, Bintang Bano Dam in West Nusa Tenggara, and Leuwikeris Dam in West Java. These three dams have the capacity to generate tens of megawatts of electricity, making them essential assets in supporting the national energy supply. Furthermore, of the 61 dams constructed between 2015 and 2024, 43 have been identified as having potential for hydroelectric development. Thirty-five of these dams have already been included in the Electricity Supply Business Plan (RUPTL).
Deputy Minister of Energy and Mineral Resources, Yuliot Tanjung, stressed that integrating dam and hydroelectric plant development into a single PPP scheme will improve efficiency. By combining irrigation, raw water supply, and power generation functions into one project package, the economic value becomes more attractive to private sector investors. This approach also enables faster development while ensuring the sustainability of energy infrastructure, particularly in regions with limited electricity access. Additionally, this model supports equitable energy development, ensuring that its benefits reach communities across the country.
On the other hand, oil refinery development is another crucial pillar in the energy self-sufficiency strategy. State-owned energy company PT Pertamina (Persero) plays a central role in executing National Strategic Projects (PSN) outlined in the 2025-2029 National Medium-Term Development Plan (RPJMN). These projects include the development of green refineries, biofuel production, and gas network expansion, all designed to strengthen national energy resilience. These efforts also align with long-term goals to reduce dependence on fuel imports and promote the use of more environmentally friendly energy sources.
Pertamina’s seven PSNs consist of two new projects and five ongoing projects. The new projects include the Sumatra Biorefinery in Riau and the Refinery Development Master Plan (RDMP) for Refinery Unit VI Balongan in East Java. Meanwhile, ongoing projects include the expansion of the Tuban Oil Refinery in East Java, the development of methanol- and ethanol-based biofuels in Bojonegoro, the RDMP for RU IV Cilacap in Central Java, the Cilacap Biorefinery, and the construction of urban gas networks in major cities such as Batam, Palembang, and Jakarta. This diverse range of projects demonstrates a comprehensive approach to meeting energy needs, from increasing production capacity to providing distribution infrastructure.
Urban gas network development is a top priority in the 2025-2029 RPJMN, as energy resilience is not only determined by production capacity but also by the availability of well-distributed supporting infrastructure. This program aims to improve public access to cleaner, more affordable, and efficient energy while reducing reliance on expensive and less environmentally friendly conventional fossil fuels. With a broader gas network, the government hopes to create an inclusive energy ecosystem, support local economic growth, and improve people’s quality of life.
Through the synergy between power plant and oil refinery development, the government demonstrates a strong commitment to achieving energy independence. Collaboration with the private sector through the PPP scheme enables accelerated development without compromising fiscal sustainability. This approach also reflects policies focused on efficiency, sustainability, and public welfare. With a well-planned and integrated strategy, Indonesia is increasingly optimistic about achieving an independent, competitive energy future that meets the needs of future generations while strengthening its position on the global stage.
*) Economic Analyst from Pancasila Madani Institute
