Energy transition strategic imperative to cut import burden: ministry

Jakarta (ANTARA) - The transition from fossil fuels to new and renewable energy is a strategic imperative to reduce Indonesia's import burden and secure long-term energy sovereignty, the Energy and Mineral Resources (ESDM) Ministry stated.

Satya Hangga Yudha Widya Putra, an expert staff member to the ESDM Minister, said in his statement on Friday that President Prabowo Subianto has directed the government to accelerate this transition to protect the country from the volatile global energy market.

”Indonesia currently faces major challenges in the oil sector. Our oil consumption stands at 1.6 million barrels per day, while domestic lifting is only 577,000 barrels per day. This means we must import more than 1 million barrels every single day," Hangga said.

He explained that Indonesia has been a net oil importer since 2004 due to aging domestic reservoirs and high water content in existing oil fields.

Infrastructure limitations further compound the issue. Hangga detailed that out of a total national refinery capacity of 1.2 million barrels per day, existing facilities can currently process only 900,000 barrels.

This gap forces the government to cover the remaining deficit by importing finished fuel products.

This structural dependence heavily drains the State Budget, according to Hangga, particularly during global geopolitical crises such as recent threats to shipping lanes in the Middle East's Strait of Hormuz.

"Therefore, the transition to renewable energy is no longer just an alternative but a strategic imperative," Hangga remarked.

While renewable energy currently accounts for only 18 percent of the national energy mix, he expressed optimism that an aggressive roadmap will guide Indonesia toward its Net-Zero Emissions (NZE) target by 2060.

As part of this push, the ESDM Ministry, alongside state electricity firm PT PLN, is overseeing the planned construction of 100 GW of solar power plants over the next three years.

The strategy also includes optimizing localized resources like geothermal, biomass, and nuclear power, and accelerating the village electricity program.

In contrast to the oil deficit, Hangga pointed out that Indonesia holds an exceptionally strong bargaining position in other commodity markets.

The natural gas sector maintains a steady surplus, with 70 percent allocated for domestic needs and 30 percent exported via pipeline or as liquefied natural gas (LNG).

Furthermore, Indonesia controls more than 40 percent of the global coal supply and possesses massive reserves of strategic minerals like nickel—which are critical to the global green transition.

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Translator: Kelik Dewanto, Yashinta Difa

Editor: Azis Kurmala

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