By: Sadewa Ananta )*
The Indonesian government continues to push for energy self-sufficiency through the development of renewable energy and optimal utilization of domestic resources. This step is part of a strategy to strengthen national energy security while encouraging sustainable economic growth.
President Prabowo Subianto emphasized that energy independence not only reduces the budget deficit caused by fuel subsidies and dependence on imports, but also serves as a key driver of national economic growth. The President assessed that if Indonesia successfully achieves energy self-sufficiency, the country could save up to US$58 billion per year by reducing subsidies and energy import costs.
President Prabowo believes that achieving energy self-sufficiency can be achieved by increasing electricity production capacity to 100 gigawatts. He is optimistic that by accelerating development and focusing on strategic projects, Indonesia can achieve this target in the next four to five years. Energy independence, he believes, is not just about providing affordable electricity to the public, but also encouraging job creation, increasing industrial competitiveness, and efficiencies in production costs.
In the context of energy infrastructure development, PGN President Director Arief S. Handoko explained that PT Perusahaan Gas Negara Tbk (PGN) is accelerating the development of its natural gas network based on the principle of comprehensive integration. The integration of pipelines and non-pipeline facilities allows the company greater flexibility in meeting demand and expanding markets across Indonesia. PGN continues to maintain connectivity through its distribution pipeline network in western Indonesia to ensure supply reliability and open access to new customers.
Several key projects undertaken by PGN include the Dumai-Sei Mangke Pipeline, which transports gas from North Sumatra and Aceh to central and southern Sumatra, and the Cirebon-Semarang Transmission Pipeline, which transports surplus gas from East Java to western Java.
In addition, PGN is developing a fuel oil-to-gas conversion program at the Cilacap Refinery and expanding natural gas access on the southern side of Java through the Tegal-Cilacap Pipeline. By 2025, PGN targets adding 200,000 new household connections through the household gas network.
Gas network development also supports downstream industrial processes, such as the Bintuni-Fakfak Pipeline project to supply gas to petrochemical plants, as well as gas distribution to industrial areas in Makassar, Parimo, Morowali, and Bintuni Bay. Non-pipeline natural gas infrastructure, including LNG facilities in central and eastern Indonesia, is used to meet demand from the smelter and power generation sectors, including a collaboration with PLN EPI for gasification of a power plant in northern Papua. PGN is also revitalizing the Arun LNG Hub Tank to increase LNG storage capacity, with construction progress reaching 73 percent.
In addition to PGN, PT Pertamina (Persero) emphasized its strategic role in supporting national energy self-sufficiency. Pertamina’s President Director, Simon Aloysius Mantiri, stated that the company is responsible for ensuring energy availability for the community through business optimization to ensure more efficient and effective operations, thus providing optimal benefits for the company’s sustainability.
Pertamina’s ambitious targets for 2029 include increasing oil production from 560,000 barrels per day to 914,000 barrels per day, and gas production from 2,713 million standard cubic feet per day to 3,470 million standard cubic feet per day. Refinery intake is also being increased from the current 315 million barrels to 382 million barrels, with fuel sales targeted to rise from 72 million kiloliters to 90 million kiloliters by 2029. Pertamina is also expanding its clean energy services by increasing its household gas network from 67,000 connections to 414,000 connections, as part of its efforts to provide environmentally friendly alternative energy.
Pertamina’s Board of Directors emphasized that despite facing global challenges, such as fluctuating oil prices and geopolitical uncertainty, the company is committed to implementing its roadmap to support the government’s goal of national energy self-sufficiency.
Pertamina also emphasized its commitment to achieving its 2060 Net Zero Emission target through sustainable programs aligned with the Sustainable Development Goals (SDGs) and the implementation of Environmental, Social & Governance (ESG) principles across all business lines.
By accelerating gas infrastructure development by PGN, optimizing Pertamina’s operations, and developing clean energy, the government emphasizes that energy self-sufficiency is not merely a technical goal. These efforts are strategic instruments to strengthen energy security, stimulate economic growth, create jobs, and ensure equitable distribution of public welfare. These steps underscore the government’s commitment to realizing an independent, sustainable, and capable Indonesia.u face future energy challenges.
The government’s efforts to promote energy self-sufficiency are also directed at increasing the mix of renewable energy sources, such as solar, wind, and biomass. The Ministry of Energy and Mineral Resources emphasizes the importance of a green energy transition that not only supports environmental sustainability but also strengthens Indonesia’s position in the global supply chain.
By utilizing its abundant renewable energy potential, Indonesia is expected to reduce its dependence on fossil fuels and create a more resilient energy system. Significant investment in clean energy technology research and innovation continues to be encouraged so that Indonesia can compete internationally and become a hub for sustainable energy in the Asian region.
)* The author is a Gas and Oil Observer
