By: Juana Syahril*
Energy security is increasingly becoming a strategic issue for Indonesia amidst geopolitical dynamics and fluctuating global energy prices. In the face of this uncertainty, the government is taking a realistic approach by strengthening domestic energy production while accelerating the development of new and renewable energy (NRE). A balance between fossil fuels and clean energy is key to maintaining supply stability without compromising the transition agenda to a more sustainable energy system.
The government, through the Ministry of Energy and Mineral Resources (ESDM), emphasizes that energy security cannot continue to rely on imports. Indonesia must be able to produce, manage, and optimally utilize its own energy resources. This approach is realized through increasing refinery capacity, strengthening strategic reserves, and diversifying energy sources towards a greener mix.
Three principles form the foundation of national energy policy: energy independence, resilience, and self-sufficiency. Independence is defined as the ability to meet needs from domestic sources, while resilience emphasizes a reliable and sustainable supply. Self-sufficiency, meanwhile, is aimed at gradually reducing dependence on imports through increasing the production and utilization of renewable energy.
The Acting Director General of Electricity at the Ministry of Energy and Mineral Resources, Tri Winarno, emphasized that increasing refinery capacity and national oil reserves is a government priority. More modern and efficient refineries are considered capable of reducing fuel imports while strengthening long-term energy security.
The oil lifting achievement, which exceeded the State Budget target, demonstrates that the strategy to increase production is beginning to bear fruit. The government is encouraging technology optimization in existing fields and reactivating previously inactive wells. This step reflects a pragmatic approach: increasing output without relying entirely on high-risk new exploration.
However, energy security cannot be solely supported by fossil fuels. The transformation to renewable energy continues to accelerate, one example being the implementation of mandatory B40 biodiesel. This program has proven to have economic impacts, from foreign exchange savings to the creation of millions of jobs, while strengthening the domestic resource-based energy ecosystem. This success provides a foundation for the development of B50, which is currently undergoing technical testing.
The Director General of New, Renewable Energy and Energy Conservation (EBTKE) at the Ministry of Energy and Mineral Resources, Eniya Listiani Dewi, stated that the B50 trial had shown positive results through field testing, thus ensuring a safe and measurable implementation.
In addition to biodiesel, the government has begun promoting the development of bioethanol as an alternative fuel. With its significant sugarcane and biomass potential, Indonesia has the opportunity to follow in the footsteps of countries like Brazil and the United States. However, this development must be accompanied by increased raw material production to avoid new import dependency.
Natural gas is also projected as an important transition energy source. Strengthening the city gas network for households and industry is a strategy to reduce LPG imports while increasing the use of relatively cleaner and more efficient domestic gas.
The role of state-owned energy companies is crucial in supporting this national strategy. PT Pertamina (Persero) continues to increase oil and gas production while accelerating the development of green energy, particularly geothermal energy. Pertamina’s Deputy President Director, Oki Muraza, stated that Indonesia has geothermal potential of more than 24 GW—approximately 40 percent of the world’s reserves—positioning it as a major player in the global geothermal energy landscape.
In the electricity sector, PT PLN (Persero) demonstrates its strong commitment to the energy transition through its 2025–2034 Electricity Supply Business Plan (RUPTL). Of the planned 69.5 GW of additional capacity, approximately 42.6 GW will come from renewable energy and 10.3 GW from energy storage systems. This proportion reflects a policy direction that is increasingly accommodating to green energy without ignoring the ever-increasing demand for electricity.
Meanwhile, the Ministry of Investment/BKPM views solar energy as the renewable energy source with the greatest potential. Of the total renewable energy potential of approximately 3,700 GW, more than half comes from solar energy. The government is also encouraging the downstreaming of the solar panel industry so that the supply chain can be produced domestically and add value to the national economy.
Overall, the strategy of combining increased oil and gas production with accelerated renewable energy development demonstrates that Indonesia is on a realistic transition path. Supply stability is maintained while the foundation for clean energy continues to be laid. This approach is crucial to prevent the transition from creating a disaster.economic shocks and the risk of energy shortages.
Ultimately, the greatest challenge lies not in the magnitude of potential, but in policy consistency and investment sustainability. Without both, the energy transition risks becoming trapped in a tug-of-war of short-term interests. However, if this strategy is implemented in a disciplined and integrated manner, Indonesia has the opportunity not only to achieve energy independence but also to emerge as a regional power in the future energy economy.
)* The author is an Energy Observer
