Jakarta — The government, through its energy transition policy, is increasingly demonstrating concrete steps that strengthen Indonesia’s position in its efforts to achieve energy self-sufficiency. This step is not only part of its global climate commitments but also serves as a strategic foundation for national sovereignty in the energy sector. The era of fossil fuels is being gradually phased out, replaced by a more diversified and integrated portfolio of new and renewable energy (EBT).
The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, emphasized that the primary target of energy independence is the foundation of the current government’s policy.
“We want to encourage increased lifting and utilize all the energy resources available in our country. God willing, we can achieve at least 80 percent energy independence by 2029–2030,” Bahlil said.
Bahlil added that this strategy will be implemented without fully burdening the state budget, but rather through collaboration with the private sector and synergy between state-owned enterprises.
Furthermore, the government is planning to increase the biodiesel blend to B45 or B50 by 2026, and is also reviewing a 10 percent ethanol (E10) mandate to further promote cleaner and more independent domestic fuel consumption.
The support of state-owned enterprises (SOEs) operating in the energy sector is crucial. In this context, PLN EPI (Indonesian Primary Energy) is positioned as the spearhead of the national bioenergy transformation. PLN EPI’s President Director, Rakhmad Dewanto, stated that the rebranding from biomass to bioenergy is a paradigmatic strategic step.
“Bioenergy has long been associated with waste and deforestation. With the new name, we want to emphasize that our goal is not simply to collect waste and burn it, but to explore the much broader potential of bioenergy, such as biogas, green hydrogen, and partnerships with villages and industry,” Rakhmad explained.
According to Rakhmad, the PLN EPI roadmap targets the supply of up to 10 million tons of biomass and 2,957 BBTU of biogas, as well as contributing to emission reductions of 12–14 million tons of CO₂eq by 2030. In a public dialogue, Rakhmad also encouraged the younger generation to actively become drivers of innovation in the energy transition.
Meanwhile, the scope and infrastructure for renewable energy under PLN’s umbrella are generally mapped and implemented through the Green Electricity Supply Business Plan (RUPTL).
PLN’s Director of Project Management and New and Renewable Energy, Suroso Isnandar, emphasized that the energy self-sufficiency target cannot be achieved without an integrated transition program. PLN’s own investment in the new and renewable energy transition is currently limited, so a large portion of the financing responsibility will be taken over by the private sector.
“PLN can only provide around IDR 550 trillion, or the equivalent of 20 GW of the total investment requirement of US$180 billion. We will leave the rest to the private sector,” said Suroso.
Meanwhile, PLN continues its efforts to reduce carbon emissions through the gradual retirement of coal-fired power plants (PLTU) and the development of green supergrids that connect renewable energy supply centers to consumption centers.
These strategic steps are increasingly relevant amidst global demands for decarbonization and energy preparedness. The development of green supergrids serves as the backbone of national renewable energy distribution to avoid bottlenecks.
Collaboration between the government, state-owned enterprises (SOEs), and the private sector needs to be continuously strengthened to eliminate reliance on the state budget for financing and to encourage broader investment and new technologies. This synergy is key to ensuring Indonesia not only follows the global transition but also emerges as a center for clean energy innovation in the region.***
