In brief
Indonesia’s National Energy Council urged that broadening the country’s energy portfolio can shield it from global market shocks. With plans to boost renewable share to 70‑72% by 2060 and slash coal’s role, the policy also aims to lessen imports of crude oil, fuels and LPG, detailing concrete steps to diversify supplies, augment stockpiles and build buffer reserves.
In a public briefing at the University of Lampung on Friday, Surono, a member of Indonesia’s National Energy Council (DEN), highlighted the imperative of diversifying the nation’s energy sources to guard against market volatility and strengthen long‑term security. He argued that heavy reliance on a single source builds systemic risk, and diversification can reduce price shocks, better exploit domestic resources and improve overall system reliability.
Surono noted that Indonesia’s strategic plans already target a surge in new and renewable energy (NRE), aiming to capture 70–72 percent of the primary energy mix by 2060. The roadmap envisions harnessing solar, hydropower, bioenergy, geothermal, nuclear, tidal and ocean‑current resources to meet this ambition. This shift comes alongside an expected, steady decline in coal’s share—from 40.7 percent in 2030 to just 7.8 percent in 2060, according to DEN data.
“Diversifying energy sources is crucial to achieving energy security, as it helps reduce the risks associated with dependence on any single source,” Surono said. He added that diversification helps mitigate price shocks, maximize domestic resources and improve overall system reliability.
The push for diversification also addresses sharp import dependencies. In 2025, Indonesia’s crude oil required by domestic refineries is projected to come 38.7 percent from imports, domestic fuel demand 34.2 percent and domestic liquefied petroleum gas (LPG) demand a staggering 80.6 percent—all figures that heighten vulnerability to global supply disruptions.
To counter these gaps, Surono outlined four priority measures. First, diversifying energy import sources and supply routes will spread risk across multiple suppliers and logistics pathways. Second, strengthening operational fuel and LPG stockpiles will provide a buffer during supply shocks. Third, optimizing domestic crude oil production could reduce dependence on foreign imports. Finally, accelerating the development of national energy buffer reserves—referred to in the policy as CPE—would further insulate the country from price swings and supply failures.
These initiatives sit within Indonesia’s broader decarbonization programme, which balances a decreasing coal footprint with increasing renewable deployment. By shifting emphasis toward NRE, the nation anticipates a cleaner energy profile, lower greenhouse gas emissions and a more resilient grid capable of absorbing domestic supply shocks.
Alongside the technical blueprint, Surono emphasized that institutional commitment to diversifying energy mixes will rely on transparency and accountability. The National Energy Council plans to monitor progress toward the 70–72 percent renewable target, publishing regular updates and inviting stakeholder participation. Such oversight will be critical, he said, to ensure that policy adjustments respond effectively to market changes.
For ordinary citizens, this shift could mean steadier energy prices, reduced supply disruptions and greater local choice in power generation. Regions with abundant solar or geothermal potential, for example, could see new investment opportunities, adding to local employment and economic activity.
Meanwhile skeptics caution that the timeline may overlook infrastructure gaps or financing challenges. Yet Surono's presentation highlighted that addressing import dependencies is central to preventing future crises. Strengthening buffer reserves, for instance, would allow the government to maintain supply continuity even amid global shocks, protecting businesses and households alike.
Ultimately, Surono’s appeal signals a pivotal turning point for Indonesia’s energy future: a concrete policy roadmap that balances growth, security and environmental stewardship. By expanding renewable capacity, curbing coal dependence and shoring up supply chains, the country seeks to secure its energy foundation for the next half‑century and protect citizens from market volatility that can ripple through the economy and daily life.
