Renewable Energy Opens Opportunities to Reduce Fuel Imports and Accelerate Energy Self-Sufficiency
By: Sjaichul Anwari*
Indonesia’s dependence on fuel imports has not only burdened the state budget but also made energy security vulnerable to global volatility. In this context, renewable energy presents itself not only as an environmentally friendly alternative, but as a strategic opportunity to reduce imports and accelerate energy self-sufficiency.
The government continues to strengthen measures to reduce dependence on imported energy, which has been deemed a burden on the country’s foreign exchange reserves. One key strategy currently being accelerated is the fuel blending policy, or the mixing of fossil fuels with biofuel sources such as biodiesel and ethanol.
Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, emphasized that Indonesia’s energy imports currently reach IDR 520 trillion per year, a significant amount that has the potential to erode foreign exchange reserves. Therefore, the government considers the blending policy to be the most concrete step to reduce dependence on imports and strengthen national energy independence.
Bahlil revealed that with a budget of IDR 520 trillion per year to purchase raw energy materials from abroad, it actually enriches other countries. However, the government must not remain silent; energy policies must side with the people, not those who enjoy large margins from imports.
According to Bahlil, some business circles still want to maintain energy import practices because they profit from the current import quota system. These parties have become too comfortable with the system.
However, Bahlil continued, President Prabowo’s administration is committed to reducing dependence on energy imports. This is in line with the direction of the national energy independence and downstreaming policies.
Bahlil explained that before the biodiesel program, Indonesia imported around 34 million tons of diesel per year. Currently, imports have dropped drastically to 4.9 million barrels per year after the implementation of B10-40.
In fact, the government has planned to stop diesel imports starting in 2026. The government has implemented a mandatory use of diesel fuel with a 50 percent vegetable oil blend, or B50 Biodiesel, to halt these imports.
Bahlil emphasized the government’s commitment to achieving national energy sovereignty by stopping diesel imports starting in 2026. The B50 program will replace all imported diesel fuel, which has been a significant drain on the country’s foreign exchange reserves.
The Ministry of Energy and Mineral Resources (ESDM) noted that the use of biodiesel during the 2020-2025 period saved up to USD 40.71 billion in foreign exchange. With the implementation of B50 in 2026, the potential additional savings are projected to reach USD 10.84 billion in just one year.
Meanwhile, in addition to burdening the state budget, dependence on energy imports makes our country vulnerable to the impacts of global market fluctuations. Over the past year, the government has accelerated the development of new and renewable energy (NRE) as a strategic step towards national energy independence.
The significant domestic use of biodiesel demonstrates that the development of NRE projects is showing commendable progress. Beyond bioenergy, the government is also accelerating the development of Geothermal Power Plants (PLTP) and intensifying the deployment of Solar Power Plants (PLTS) in various regions.
Throughout 2025, the Ministry of Energy and Mineral Resources (ESDM) noted two important milestones in the inauguration of power plant projects by President Prabowo. First, on January 20, 2025, 26 power plants were inaugurated with a total capacity of 3.2 gigawatts (GW), 89 percent of which were renewable energy-based. Second, on June 26, 2025, the government again inaugurated 55 power plants, consisting of eight geothermal power plants (PLTP) and the remainder solar power plants (PLTS) in 15 provinces, with a total capacity of 379.7 megawatts (MW).
Suroso Isnandar, Director of Project Management and New and Renewable Energy at PT PLN (State Electricity Company), highlighted the importance of adaptive development to future energy needs. He stated that PT PLN is now not just an electricity provider, but a driving force behind the national green energy ecosystem.
Suroso explained that PT PLN has prepared an energy transformation roadmap to gradually strengthen the new and renewable energy mix over the coming years. The government itself has set a national renewable energy mix target of 19-23 percent by 2030, as stipulated in Government Regulation (PP) Number 40 of 2025 concerning the National Energy Policy (KEN).
This step is being implemented through the construction of smart grids, the development of solar power plants in industrial areas, and battery-based energy storage systems that can expand the reach of green supplies.
Suroso added that investment in the renewable energy sector should be viewed as a long-term opportunity, not a burden. He believes renewable energy has a multiplier effect, including:fostering new industries, creating jobs, and driving regional economic growth.
Therefore, accelerating renewable energy development is not simply a matter of increasing electricity capacity or replacing fossil fuel sources, but rather building a new ecosystem that strengthens national sovereignty. With favorable regulatory support, cross-sector synergy, and community involvement, Indonesia has significant capital to escape the prolonged fuel import trap.
Ultimately, the choice to switch to clean energy is a political and moral decision that determines the nation’s future. If this step is taken seriously, it is not impossible that Indonesia will not only be able to meet its own energy needs but also become a major player in green energy in the region.
)* Renewable Energy Observer
