Energy Self-Sufficiency, the Path to Economic Independence in the First Year of the Prabowo-Gibran Administration
Prabowo Subianto delivered his first speech as President of the Republic of Indonesia after being inaugurated at the Plenary Session of the People’s Consultative Assembly (MPR) for the Inauguration of the President and Vice President for the 2024-2029 term in the Main Meeting Room of the DPR/MPR RI, Jakarta, Sunday (10/20/2024). The MPR inaugurated Prabowo Subianto and Gibran Rakabuming Raka as President and Vice President of the Republic of Indonesia for the 2024-2029 term. The inauguration was also attended by several heads of state and representatives of friendly countries. KOMPAS/RONY ARIYANTO NUGROHO 10-20-2024
By: Bagus Pratama
As the first year of the administration of President Prabowo Subianto and Vice President Gibran Rakabuming Raka approaches, the direction of national energy policy shows a clear shift towards independence. While many considered the energy self-sufficiency target too ambitious at the beginning of this pair’s administration, current performance indicators on the ground demonstrate that the path toward energy independence is on the right track. The government appears serious about restructuring the national energy landscape by balancing oil and gas production, new and renewable energy (EBT) development, and strengthening regulations and investment at the regional level.
The energy self-sufficiency narrative has become increasingly relevant in light of the reflections on the first year of the administration. In various forums, President Prabowo emphasized that energy independence is a crucial part of the national economic independence strategy. The government, he stated on several occasions, no longer wants Indonesia to be dependent on fluctuating global energy prices. These concrete steps are now beginning to be seen in policies on the ground.
One significant achievement that has drawn attention is the increase in national oil lifting. Based on public data, Indonesia’s average oil production, previously around 430,000 barrels per day, has now reached nearly 600,000 barrels. Energy observers believe this achievement is the result of operational efficiency and improved upstream oil and gas governance. They emphasize that the increased production is not merely a technical achievement, but a symbol of the government’s success in optimizing a previously underutilized national asset.
According to analysts, this step marks a turning point toward energy resilience under the Prabowo-Gibran leadership.
Support for this policy direction has also come from academics. Two professors from Bandung Islamic University (Unisba) and Padjadjaran University (Unpad) believe the government’s policy toward energy self-sufficiency is on the right track. They believe the mandatory implementation of 10 percent ethanol (E10) in fuel is a strategic step that not only reduces dependence on imports but also has broad economic impacts for the agricultural sector and the bioenergy industry. They argue that community involvement through the “people’s oil well” program can be a model for inclusive local economic empowerment, as long as its governance takes into account the welfare of communities surrounding the operational areas.
In this context, the first year of the Prabowo-Gibran administration appears to mark a transition from dependence to independence. The government is not only strengthening conventional energy production capacity but also paving the way for the acceleration of renewable energy. The development program for solar power plants (PLTS), small-scale hydropower plants, and biomass energy projects demonstrates the government’s commitment to promoting national energy diversification.
Observers note that if this policy direction continues, Indonesia has the potential to achieve partial energy independence within the next three to five years, particularly in electricity supply and domestic biofuel.
Economically, the benefits of energy self-sufficiency are beginning to be felt in various sectors. First, in terms of foreign exchange savings. By reducing fuel and LPG imports, the government can reduce pressure on the trade balance while redirecting energy subsidy funds to productive sectors such as education, infrastructure, and health. Some economists estimate that every 10 percent reduction in energy imports can save billions of dollars annually.
Second, through regional economic empowerment. The E10 policy, for example, encourages the involvement of sugarcane, corn, and cassava farmers as raw materials for ethanol. Observers call this a “dual economic strategy” because it not only supports energy independence but also creates added value for the agricultural sector. With a value chain connecting farmers, cooperatives, and the bioenergy industry, this policy serves as a concrete example of how energy programs can create economic opportunities at the local level.
Third, through job creation. Investment in the renewable energy sector—whether through the construction of solar power plants (PLTS), mini hydroelectric power plants (PLTA), or new oil and gas exploration—has created new jobs in the engineering, construction, and service sectors. The renewable energy projects being developedThe government’s investment is expected to absorb thousands of local workers in various regions. In the medium term, the multiplier effect of energy investment is believed to strengthen domestic industries, from the manufacture of power plant components to energy storage systems.
Energy self-sufficiency, in the view of economists, is not only about national energy availability, but also the foundation for Indonesia’s economic independence. With the ability to produce its own energy, the country has stronger fiscal sovereignty and the ability to determine the direction of development without external pressure.
This is why the achievements in the first year of the Prabowo-Gibran administration deserve appreciation as a stepping stone towards a more sovereign, sustainable, and people-centered energy future.
As Prabowo-Gibran’s first year in office approaches, the public sees that energy development is no longer just a technical project, but part of a grand vision to make Indonesia economically self-sufficient. If policy consistency and public oversight are maintained, it is not impossible that in the next decade, Indonesia will truly write history as a nation independent in the energy sector and, ultimately, in the national economy.
*) Macroeconomic Analyst
