Balancing Energy Transition and National Self-Sufficiency Goals

Balancing Energy Transition and National Self-Sufficiency Goals

Indonesia stands at a pivotal juncture in its national energy journey. Data from August 2025 reveals a significant milestone: oil and gas production has surpassed the target set in the 2025 State Budget (APBN), reaching an impressive 1.7 million barrels of oil equivalent per day (MBOEPD). This achievement undoubtedly signifies progress in the oil and gas sector. However, the fact that over half of the country's energy needs still heavily rely on oil and gas imports highlights a pressing gap that needs to be addressed. This is closely tied to Indonesia's noble aspiration of achieving energy self-sufficiency.

In a visionary move, President Prabowo Subianto has set an ambitious target: to supply the entire national electricity demand from renewable energy sources within the next decade. This ambitious goal necessitates substantial transformations in policy, technology, investment, and commitment from all stakeholders. It's important to acknowledge that the development of renewable energy (RE) is a gradual process that requires time and effort.

In this context, natural gas emerges as a potential bridge to sufficient renewable energy availability. It is considered superior to other fossil fuels due to its lower emissions compared to coal and oil. Additionally, natural gas's versatility makes it suitable for various applications, including power generation, industrial commodities, and household needs. These characteristics position natural gas as a crucial buffer during the transition period when renewable energy sources are still developing.

It's crucial to recognize that natural gas and renewables should not be viewed as mutually exclusive options. Instead, they should be seen as complementary elements that can work together to achieve energy self-sufficiency. Indonesia still holds substantial natural gas reserve potential. Out of 128 oil and gas basins, approximately 68 remain unexplored. These untapped resources could be pivotal in achieving energy self-sufficiency, as envisioned by President Prabowo. According to the latest data, Indonesia's proven natural gas reserves in 2024 were recorded at around 33.84 trillion cubic feet (Tcf). Additionally, shale gas presents another significant potential, estimated at 572 Tcf.

These figures indicate that Indonesia's natural gas reserves remain highly promising for meeting future energy demands, particularly in reducing reliance on oil and gas imports and ensuring supply during the transition from fossil fuels to renewable energy. Consequently, concrete government strategies and actions are essential to expedite exploration in new working areas, particularly in remote (frontier) regions, and optimize production from existing fields. Furthermore, conducive regulations, legal certainty, and fiscal incentives are believed to enhance Indonesia's investment appeal. Without improvements in these areas, realizing the aspiration of energy self-sufficiency will be challenging.

Natural gas plays a crucial role in both energy security and economic growth. Its downstream development is expected to bolster various national industries, including petrochemicals, fertilizers, and natural gas-based power generation. A stable natural gas supply, competitive pricing, and well-developed infrastructure, such as pipeline networks, LNG terminals, and regasification facilities, can enhance Indonesia's industrial sector's competitiveness and create new investment opportunities across different economic sectors. In essence, the development of natural gas in Indonesia not only supports energy security goals but also drives inclusive economic growth. Energy self-sufficiency is a national aspiration that cannot be compromised. Indonesia must ensure its energy needs are met while reducing reliance on imports from other countries.

President Prabowo Subianto's vision of meeting 100% of electricity demand from renewables should not be misconstrued as an immediate replacement of fossil fuels. Instead, natural gas can be viewed as a catalyst that makes the energy transition more feasible and quantifiable. By aggressively developing renewable energy and optimizing the use of natural gas, Indonesia can maintain energy security while progressing toward sustainable energy independence. A nation that can meet its energy needs independently will be better equipped to navigate global uncertainties, formulate its policies autonomously, and exercise greater sovereignty in shaping its future. (*)