From Upstream to Downstream: The Government’s Strategy to Strengthen Indonesia’s Energy Security
By: Zaki Walad)*
The administration of President Prabowo Subianto has placed the strengthening of the upstream energy sector as a fundamental pillar in efforts to reinforce domestic energy security. This policy was not formulated as a short-term response, but rather as a structural strategy to address challenges such as dependence on imports, global geopolitical fluctuations, and Indonesia’s steadily growing energy demand.
Within this context, the upstream oil and gas sector has once again been positioned as a crucial support for the sustainability of national energy supply amid the transition toward cleaner energy sources.
The focus on the upstream sector reflects the government’s view that energy security cannot be built solely from the downstream and consumption sides. Strong domestic production is a key prerequisite for energy independence.
The government has set an ambitious target to increase oil and gas production to one million barrels of oil per day and 12 thousand MMSCFD of natural gas by the 2029–2030 period. These targets underscore the state’s seriousness in restoring the upstream oil and gas sector as the backbone of the national energy system.
Minister of Energy and Mineral Resources Bahlil Lahadalia emphasized that President Prabowo’s directives to the National Energy Council for the 2026–2030 period focus on four main pillars: energy sovereignty, energy security, energy independence, and energy self-sufficiency.
The inauguration of the National Energy Council marks a new chapter in the consolidation of energy policy, where the formulation of the roadmap is no longer sectoral in nature, but instead integrated across ministries and stakeholders. Within this framework, strengthening the upstream sector serves as a state instrument to reduce dependence on fuel imports, which for years have burdened the trade balance.
National energy resilience, which previously relied on reserves of only around three weeks, is projected to increase to up to three months. The government is encouraging the development of energy storage infrastructure and the optimization of domestic production as concrete steps to reduce the risk of supply disruptions. These efforts demonstrate a shift from reactive policies toward preventive and long-term strategies.
Strengthening the upstream sector is also being pursued through regulatory reform. The issuance of Minister of Energy and Mineral Resources Regulation No. 14 of 2025 is seen as opening new opportunities for accelerating upstream oil and gas investment.
The regulation promotes decentralization of management, simplifies licensing procedures, and provides direct economic benefits to producing regions. With a more adaptive investment climate, exploration of new reserves is expected to move more rapidly through the utilization of advanced seismic technologies.
From an energy security perspective, strong upstream oil and gas performance plays a vital role in maintaining supply stability amid rising domestic demand. The government has positioned the reduction of oil, LPG, and gasoline imports as strategic objectives, ensuring that energy self-sufficiency is not merely a slogan, but is realized through increased domestic production capacity.
The upstream oil and gas industry is projected to become a key anchor in this agenda, while also creating multiplier effects for the national economy through job creation and the strengthening of supporting industries.
President Prabowo Subianto has consistently emphasized that energy independence is a prerequisite for a nation’s true sovereignty. On various occasions, the President has stressed the importance of building national self-confidence and managing energy resources in a trustworthy, clean, and transparent manner.
The commitment to cleanse energy governance from corruption and import manipulation reinforces the message that strengthening the upstream sector is oriented not only toward production, but also toward integrity in resource management.
Strengthening the upstream energy sector also runs parallel with the transition agenda toward net zero emissions. Natural gas is positioned as a realistic transition energy, bridging domestic energy needs with emissions reduction targets.
At the same time, the government is laying a long-term foundation through the preparation of a nuclear energy roadmap and the establishment of the Nuclear Energy Program Implementation Organization, which is nearing institutional completion.
Appreciation for the role of the upstream oil and gas industry has also come from Coordinating Minister for Food Affairs Zulkifli Hasan. During a working visit to the operational facilities of PT Saka Energi Indonesia, Zulkifli Hasan assessed production achievements that exceeded targets as concrete evidence of the upstream sector’s contribution to maintaining national energy security.
This performance demonstrates that optimization of existing assets, the application of appropriate technology, and consistent operational discipline are capable of delivering reliable and sustainable energy supply.
Furthermore, this success reinforces the view that strengthening the upstream sector not only impacts energy security, but also generates multiplier effects for the economy, ranging from job creation and increased state revenue to enhanced investor confidence in the national energy investment climate.
Looking ahead, the sustainability of upstream oil and gas production remains a strategic agenda inseparable from the grand vision of President Prabowo’s administration. The government positions this sector not merely as a source of energy supply, but as an instrument of national development capable of driving investment, strengthening domestic industrial capacity, and creating economic value added in operational regions.
Strengthening the upstream energy sector represents a concrete step to ensure the security of domestic energy, reduce dependence on foreign sources, and support national sovereignty amid increasingly complex global dynamics.
With clear policy direction, continuous governance reform, and consistent implementation on the ground, the upstream energy sector has the potential to become a solid foundation for Indonesia’s long-term energy security while safeguarding sustainable development across generations. (*)
)* The author is a contributor to the Indonesian Strategic Information Studies Institute.
