Government and Private Sector Collaboration Accelerates National Energy Self-Sufficiency

By: Rivka Mayangsari *)
Indonesia continues to move towards energy independence through various strategies implemented by the government and the private sector. Strong energy resilience will serve as the foundation for economic growth and societal well-being. Efforts to achieve energy self-sufficiency have intensified through various initiatives focused on utilizing domestic resources and improving efficiency in national energy management.
In recent years, Indonesia’s dependence on energy imports has remained a significant challenge. Consequently, various policies have been implemented to increase domestic energy production and accelerate the transition to more sustainable energy sources. The synergy between the government and the private sector is a key factor in this effort, where the right investments can accelerate the development of more advanced and self-sufficient energy infrastructure.
To achieve national energy self-sufficiency, collaboration between the government and the private sector is crucial in realizing sustainable energy resilience. Various strategic measures have been undertaken by different parties to expedite the transition to a more independent, efficient, and environmentally friendly energy system.
One of the major players in the energy sector, liquefied petroleum gas (LPG) producer PT ARSynergy NiX Indonesia, has expressed its commitment to supporting the government’s program in achieving national energy self-sufficiency. PT ARSynergy NiX Indonesia’s President Director, Achmad Harijanto, stated that the company has taken concrete steps by introducing its latest LPG product, ArsyGas, which has been distributed to the domestic market, particularly in Java and Bali, over the past nine months.
With the concept of “The Right Gas,” ArsyGas enters the market at a time when the demand for LPG as a primary energy source in various industries in Indonesia is increasing. The presence of ArsyGas in society and industry is expected to support the government’s commitment to achieving national energy self-sufficiency.
Apart from the private sector, the government continues to develop strategic policies in national energy management. Deputy Minister of Energy and Mineral Resources (ESDM), Yuliot Tanjung, emphasized the importance of integrating dam construction and hydroelectric power plants (PLTA) under a single Public-Private Partnership (PPP) scheme. According to him, if the PPP scheme can integrate the construction of dams and hydroelectric plants into a single package, the process will be more efficient and economically valuable.
By adopting a single-package scheme that includes irrigation, raw water supply, and hydroelectric power plants, economic planning can be more well-structured from the beginning. When offered under a PPP scheme, the economic value for business players also becomes more attractive. This approach is expected to significantly contribute to energy self-sufficiency by optimizing available resources. Furthermore, this scheme enables the acceleration of power infrastructure development efficiently through private sector involvement, ultimately expediting the achievement of national energy targets.
In another effort to strengthen energy infrastructure, PT PLN Energi Primer Indonesia also plays a crucial role in the national energy transition. PT PLN Energi Primer Indonesia’s President Director, Iwan Agung Firstantara, stated that PLN is currently focusing on developing midstream gas infrastructure to support the power plant gasification program. This gasification project has the potential to reduce fuel oil (BBM) consumption by 2.3 million kiloliters per year.
There are approximately eight major projects currently being developed by PLN, covering strategic regions such as the Nias Cluster, Kalimantan, Sulawesi-Maluku, Nusa Tenggara, North-Papua, South Papua, Java, and Bali. PLN has reaffirmed its support for the Presidential Regulation, particularly in efforts to achieve Net Zero Emission (NZE) by 2060. Several initiatives have been implemented, including through the Electricity Supply Business Plan (RUPTL).
PLN has also set a target for 75 percent of total future electricity generation capacity to come from renewable energy sources. Meanwhile, during the transition to this target, gas will serve as a crucial intermediary energy source for the next 10 years. Therefore, developing gas infrastructure remains a top priority to ensure a smooth energy transition process.
The collaboration between the government and the private sector in accelerating national energy self-sufficiency is not only aimed at reducing reliance on energy imports but also at enhancing national energy resilience and driving economic growth. With stronger synergy, Indonesia is expected to achieve energy self-sufficiency more rapidly and improve societal well-being through more reliable and sustainable energy access.
Indonesia’s energy future depends on the concrete steps taken today. With the right investments, advanced technology utilization, and policies that support the energy transition, Indonesia can realize its vision of becoming self-sufficient in the energy sector. The success of energy self-sufficiency will not only positively impact industries but also ensure prosperity and sustainability for future generations. By continuously optimizing collaboration between the government and the private sector, Indonesia has a great opportunity to become a leading energy player in Southeast Asia and even on a global scale.
*) Energy Observer