Government Encourages Indonesia’s Energy Sovereignty through Oil and Gas Investments in the United States
By: Ricky Rinaldi
In an effort to strengthen national energy sovereignty, the Indonesian government continues to demonstrate strong commitment through various strategic measures. One of the visionary policies currently being implemented is encouraging investment in the oil and gas (O&G) sector abroad, including in the United States. This move reflects the government’s courage and intelligence in tackling global energy challenges with a long-term approach focused on national energy independence.
The government recognizes that energy sovereignty is the foundational pillar for achieving sustainable development. Sufficient, affordable, and sustainable energy is key to driving economic growth, opening up jobs, and improving public welfare. However, the current reality shows that Indonesia is still dependent on energy imports, especially fuels and LPG, making it vulnerable to global market volatility.
With determination, the government has taken a breakthrough step: investing directly in foreign O&G sources. Notably, the United States—a country with the most advanced O&G industry in the world—has been chosen as a strategic partner. This not only demonstrates bold decision-making but also reflects the quality of national leadership that is solution-oriented, not merely based on empty rhetoric.
Support for this move has also been expressed by the Minister of Energy and Mineral Resources, Bahlil Lahadalia. He stated that Indonesia plans to increase imports of crude oil and liquefied petroleum gas (LPG) from the United States to around US$10 billion. This strategy is part of Indonesia-U.S. trade negotiations that are not only economically beneficial but also strengthen Indonesia’s position in securing national energy supply. He emphasized that the Ministry of ESDM fully supports the expansion of energy cooperation with the U.S. for Indonesia’s long-term energy sovereignty goals.
Concrete steps have also been taken by Deputy Minister for Investment and Downstreaming, Todotua Pasaribu, who highlighted that the O&G sector is a priority in Indonesia’s strategic investment agenda in the U.S. He explained that such investments could include the acquisition of oil and gas wells, upstream development, and midstream projects such as the construction of offshore refineries. A government delegation has even been scheduled to visit the U.S. to explore further cooperation opportunities, marking the seriousness of realizing this policy.
Through state-owned enterprises (SOEs) such as PT Pertamina (Persero), the government is expanding its investment portfolio abroad, including in oil and gas fields in the United States. These investments are made through the acquisition of oil and gas blocks, technical cooperation, and control of strategic assets that can directly generate lifting for Indonesia. The United States is an ideal choice due to its political and economic stability, as well as its advanced O&G technology. The government has carefully identified this opportunity as part of diversifying national energy sources. This investment will provide supply certainty, reduce import burdens, and strengthen Indonesia’s position in the global energy supply chain.
Oil and gas investment in the United States is not merely a business transaction, but a tangible demonstration of the success of economic diplomacy led by the government. Through strategic approaches and good bilateral relations, Indonesia has successfully positioned itself as a respected partner in the international energy arena. This move also aligns with efforts to build a positive image of Indonesia as a proactive and progressive nation in responding to global challenges. Indonesia is no longer just a market but is becoming an important player in the global energy industry.
This policy will have both direct and long-term impacts on Indonesia. By owning O&G resources abroad, the government can ensure more stable and efficient domestic energy supply. This investment will also generate foreign exchange through profits from production, dividends, and tax contributions. Through technical collaboration, Indonesian human resources can gain new skills and enhance national competitiveness. This step will strengthen SOEs as the front line of Indonesia’s energy sovereignty, while also advancing the national energy industry as a whole. In the face of geopolitical uncertainty and fluctuating oil prices, diversifying energy sources is a prudent and necessary step.
The government does not overlook the importance of energy transition towards cleaner sources. This O&G investment does not mean ignoring renewable energy but is part of a medium-term strategy to ensure supply while preparing green energy infrastructure. This move shows that the government can balance the need for energy today with a long-term commitment to environmental protection. With a gradual and realistic approach, Indonesia can achieve its net-zero emission target by 2060 without sacrificing economic stability and public welfare.
Oil and gas investment in the United States is part of a smart, courageous, and national interest-driven foreign and economic policy. The current government’s leadership shows its seriousness in securing Indonesia’s energy future, not only through domestic exploration but also by expanding into global markets. This is proof that energy sovereignty is not just a dream, but a vision that is being realized with concrete actions. The support of the Indonesian people is crucial to ensure that this policy continues to run and provide the greatest benefits for the nation.
With strong commitment, a well-planned strategy, and the support of all parties, Indonesia is on the right track toward a future of independent, sovereign, and sustainable energy.
The writer is an Analyst of Strategic Issues
