*) By: Gilang Dwi Kusuma
Energy self-sufficiency has resurfaced as a national strategic agenda relevant to the challenges of the times. Global uncertainty, geopolitical turmoil, and fluctuating global energy prices serve as reminders that dependence on foreign supplies poses significant risks to national stability. In this context, government policies to strengthen energy independence should be read as both anticipatory and progressive. Energy is not merely a matter of technical production and consumption; it is directly related to economic competitiveness and public welfare. When energy is managed independently, the state has greater room to protect the public interest.
President Prabowo Subianto recently proposed a major initiative to expand oil palm plantations as part of a strategy toward national energy self-sufficiency. This initiative reflects the government’s boldness in optimally utilizing domestic potential. Palm oil has long been known as a leading export commodity, but its role as a bioenergy feedstock holds broader strategic value. By processing palm oil into renewable energy, Indonesia will not only reduce fossil fuel imports but also strengthen the foundation of its own resource-based economy. This step demonstrates that energy self-sufficiency is designed as a cross-sectoral policy.
From a scientific and ecological perspective, oil palms possess characteristics often overlooked by the public. They can absorb carbon dioxide from the air and convert it into biomass at a much higher volume than other commercial crops. This biomass is stored in the roots, stems, and leaves, contributing significantly to carbon sequestration. In fact, to date, no other commercial commodity has a photosynthetic rate that surpasses that of oil palms. This fact strengthens the argument that oil palms, if managed environmentally friendly and sustainably, can become a pillar of energy self-sufficiency and an instrument for climate change mitigation.
Undoubtedly, plans to expand oil palm plantations have generated public attention and debate, particularly regarding the issue of deforestation. The government has emphasized that this expansion will not be at the expense of natural forests. This commitment is crucial for maintaining a balance between economic development and environmental preservation. Energy self-sufficiency must not be achieved at the expense of long-term sustainability. This is precisely where the policy challenge lies: how to deliver inclusive, green, and responsible economic growth.
Beyond the bioenergy sector, the upstream oil and gas industry continues to play a crucial role in the national energy self-sufficiency agenda. Oil and gas industry players are committed to continuously supporting the strengthening of national capacity and improving the welfare of communities surrounding their operational areas. George NM Simanjuntak, Head of the Formality Division of the Upstream Oil and Gas Regulatory Agency (SKK Migas), emphasized that the upstream oil and gas industry’s contribution is not only reflected in production and state revenue. Revenue Sharing Funds and Community Engagement and Development Programs are tangible instruments that provide direct benefits to communities. Thus, the oil and gas sector also creates a significant multiplier effect on regional economies.
This multiplier effect is what makes energy self-sufficiency relevant to public welfare. When the energy industry grows, jobs are created, local businesses flourish, and community incomes increase. Social programs implemented by the oil and gas industry also strengthen community capacity in education, health, and the productive economy. This demonstrates that energy self-sufficiency is not simply about supply availability but also about the distribution of benefits. Energy becomes a tool for equitable development when managed with appropriate policies.
Strengthening national capacity is also a key focus in the upstream oil and gas sector. Kenneth Gunawan of the IPA Supply Chain Committee emphasized that optimizing the domestic supply chain is key to independence. Currently, domestic companies play a significant role in the oil and gas supply chain, while foreign companies focus on sectors requiring high technology. This approach reflects a realistic and balanced strategy for developing the national energy industry. By maximizing domestic involvement, economic added value can be enjoyed domestically.
Amidst the energy transition phase, the upstream oil and gas sector continues to play a crucial role in supporting the economy and energy security. Kenneth also emphasized the importance of maintaining a balance between meeting energy needs and the energy transition agenda. A hasty transition without adequate preparation can lead to economic turmoil, while stagnation will hinder innovation. Therefore, government policies that prioritize balance are commendable. Energy self-sufficiency must be achieved through gradual, measured steps that adapt to global dynamics.
More broadly, energy self-sufficiency is a driving force for a multiplier effect on the national economy. Energy independence strengthens fiscal stability, reduces trade balance pressures, and increases industrial competitiveness. At the same time, the people benefit through more stable energy prices and more equitable access. President Prabowo’s policies to utilize palm oil bioenergy, strengthen oil and gas, and boost national capacity demonstrate a comprehensive approach. This is not a sectoral policy, but rather a long-term development strategy.
The success of energy self-sufficiency is determined not only by government policy but also by public support. The public plays a crucial role in supporting government initiatives by being open to energy innovation and using energy wisely. Energy self-sufficiency is a collective effort to improve shared prosperity, not simply a state project.
*) New and Renewable Energy Observer.
