By: Galih Prakoso )*
Indonesia is on a strategic path toward energy self-sufficiency, which is believed to be the main driver of national economic growth. The government positions energy independence as the foundation of sustainable development and an instrument to reduce the budget deficit caused by fuel subsidies and dependence on energy imports.
President Prabowo Subianto emphasized that if Indonesia successfully achieves energy self-sufficiency, the country is estimated to save up to USD 58 billion, equivalent to IDR 939.6 trillion, per year. This figure reflects a reduction in the burden of fuel and electricity subsidies, as well as reduced energy import costs.
The President believes that achieving energy self-sufficiency can be achieved by increasing electricity production capacity to 100 gigawatts. He is optimistic that by accelerating development and focusing on strategic projects, Indonesia can achieve this target within the next four to five years. According to the President, energy independence is not only related to the availability of affordable electricity, but also serves as a driver of national economic growth, creating new jobs, and increasing industrial competitiveness.
The savings generated from energy self-sufficiency have a broad impact on the industrial sector. With reduced energy costs, companies can lower production costs, increase productivity, and expand investment capacity. This will positively impact the growth of the manufacturing industry, renewable energy, and the service sector, which depend on a reliable energy supply. Increased investment also encourages new job creation and strengthens people’s purchasing power, thereby boosting overall economic activity.
Dewi Yustisiana, a member of Commission XII of the Indonesian House of Representatives (DPR RI), emphasized that energy self-sufficiency must be the primary mission of every national energy policy. Dewi believes that energy independence is a strategic bridge towards the vision of Golden Indonesia 2045, where an independent, equitable, and sovereign energy foundation is a key prerequisite for Indonesia’s development.
According to her, continued dependence on energy imports risks weakening economic sovereignty and increasing fiscal vulnerability. Therefore, energy self-sufficiency is considered a fundamental step for Indonesia’s economic revival.
Dewi also appreciated the ideological approach adopted by the Ministry of Energy and Mineral Resources in formulating energy policies. Minister Bahlil Lahadalia positions energy not merely as an economic commodity but as a strategic instrument in national development.
This approach emphasizes constitutional and social justice perspectives, ensuring that energy is a right guaranteed by the state. With this perspective, Dewi believes the government can utilize energy as a strategic force to realize the ideals of independence, public welfare, and equitable development throughout Indonesia.
In practice, the government has demonstrated concrete steps toward energy self-sufficiency. Minister Bahlil stated that oil lifting in the first quarter of 2025 reached 580,000 barrels per day, or 96 percent of the State Budget target.
Gas lifting even exceeded the target, reaching 120 percent of the State Budget plan of 1.005 million barrels of oil equivalent per day. This demonstrates the government’s commitment to maintaining energy availability and maximizing the potential of domestic natural resources to reduce dependence on imports.
Energy self-sufficiency is also believed to strengthen strategic industrial sectors. With a stable energy supply and more efficient costs, the manufacturing sector can increase production capacity, renewable energy companies can expand their projects, and the transportation industry can utilize clean energy more widely. These effects will spur sustainable economic growth, strengthen fiscal resilience, and provide the government with budget allocations for infrastructure development, education, and social services.
The government is also promoting the use of new and renewable energy as part of its green economy strategy. This step aligns with President Prabowo’s vision, which emphasizes that energy must integrate environmental sustainability, social justice, and economic growth. With integrated management, Indonesia can accelerate the energy transition without sacrificing industrial growth and public welfare.
Energy self-sufficiency is not merely a technical project. It is a long-term strategy that integrates economic interests, sovereignty, and social justice. An ideological and constitutional approach ensures that energy is a strong foundation for national development and a key driver of economic growth.
By optimizing domestic potential, accelerating energy capacity development, and cross-sector collaboration, Indonesia is believed to be able toable to achieve energy independence in a relatively short time. Energy self-sufficiency will be the backbone of economic growth, opening investment opportunities, increasing employment, and strengthening Indonesia’s position as a sovereign, independent, and just nation.
The government’s commitment to achieving energy self-sufficiency is also demonstrated through efforts to strengthen the investment ecosystem. Various fiscal incentives are being provided to attract investors in the upstream oil and gas and renewable energy sectors. The government believes that synergy between foreign capital and national capacity will accelerate the achievement of the energy sovereignty target.
Furthermore, the development of supporting infrastructure such as electricity transmission networks, gas terminals, and energy storage facilities continues to be enhanced to ensure equitable distribution. With this comprehensive strategy, energy self-sufficiency is expected to not only enhance national resilience but also position Indonesia as a highly competitive regional energy growth hub.
)* The author is an observer of development economics
