The President of the Republic of Indonesia, Prabowo Subianto, in his inaugural state speech after being sworn in for the 2024-2029 term at the DPR/MPR building on Sunday (Oct. 20), promised that Indonesia would achieve energy self-sufficiency within 4-5 years.
He also committed to achieving energy sovereignty by developing renewable energy and utilizing the country’s abundant energy resources.
These resources include palm oil, which can produce diesel and gasoline, and other crops like cassava, sugarcane, sago, corn, and others. Indonesia also possesses geothermal, coal, hydro, wind, and solar energy.
Dr. Fahmy Radhi, an Energy Economics Analyst from Universitas Gadjah Mada (UGM), welcomed President Prabowo Subianto’s promise.
However, he pointed out that the challenge is that Indonesia currently lacks the technology to process these energy resources into renewable energy.
Dr. Radhi explained that Pertamina had made efforts with biodiesel, a mixture of diesel and palm oil, starting from B-20, increasing to B-35, and then to B-40.
Unfortunately, this program stalled because the company’s business partner from Italy ended its cooperation with Pertamina.
“Not only did biodiesel development fail, but palm-based renewable energy programs also risk clashing with food programs to produce cooking oil,” he stated at the UGM Campus Monday (Oct. 21).
This also includes the gasification program, which processes coal into gas. According to Dr. Radhi, this program faced the same failure after Air Products, the American business partner, withdrew from Indonesia.
“Gasification was deemed uneconomical due to the fluctuating coal market prices,” he explained.
Dr. Radhi elaborated that the government must pursue two strategies to acquire the necessary technology to achieve energy self-sufficiency.
First, it should attract foreign investors with the technology to collaborate with domestic energy companies and state-owned enterprises (BUMN).
The second strategy involves developing domestic research and development (R&D) by collaborating with the National Research and Innovation Agency (BRIN) and Indonesian universities to produce the required technology.
These efforts, he argued, require long-term commitment, as research and development take time and have significant costs. He added that the relevant ministers in the Merah Putih Cabinet must consistently and sustainably follow up on Prabowo’s commitment to achieving energy self-sufficiency.
“Without serious and continuous efforts, Prabowo’s commitment, as stated in his inaugural address as president, to achieve energy self-sufficiency will remain mere rhetoric,” he concluded.
Author: Agung Nugroho
Photo: Freepik.com
Post-editor: Afif