Enviro News Asia, Jakarta — Indonesian Deputy Speaker of the People’s Consultative Assembly (MPR) Eddy Soeparno urged the acceleration of the national energy transition to reduce reliance on imported fuels and safeguard foreign exchange reserves. He delivered the statement during a policy discussion at the Conference on Indonesian Foreign Policy (CIFP) 2025 at The Kasablanka, Jakarta, on Saturday.
Eddy described what he called Indonesia’s “energy paradox,” noting that the country holds substantial reserves of oil, gas, and coal—along with vast renewable energy potential—yet remains dependent on foreign energy supplies. He said national coal reserves could meet domestic needs for nearly two centuries, while renewable resources such as solar, wind, hydropower, ocean currents, and geothermal offer large-scale generation capacity.
He noted that despite these advantages, Indonesia continues to import significant volumes of energy. He cited crude oil imports of one million barrels per day, estimating that the country spends around USD 70 million daily to meet fuel demand. He added that Indonesia also imports LPG, kerosene, and diesel, which he described as a major structural challenge.
Eddy said Indonesia must maximize its renewable energy potential to address this paradox. He stressed that a faster transition to clean energy would reduce imports, strengthen the country’s external balance, and generate environmentally sustainable power. He highlighted that President Prabowo Subianto has repeatedly affirmed his commitment to expanding renewable energy, which has been translated into policies under the National Energy Policy (KEN).
He acknowledged several obstacles to rapid deployment, including the low capacity factor of solar power—around 25 to 30 percent—and the high cost of large-scale battery storage required to support intermittent energy sources. He said these challenges require careful planning and technological advancement.
Eddy added that accelerating energy transition efforts is essential to lowering emissions from coal- and diesel-fired power plants, which currently supply about 60 percent of Indonesia’s electricity. He emphasized the need for stronger coordination among government institutions, industries, and stakeholders to ensure a sustainable shift.
Several energy leaders joined the discussion, including Indonesian Chamber of Commerce and Industry (Kadin) Chairman Anindya Novyan Bakrie, Indonesian Solar Energy Association (AESI) Chair Mada Ayu Habsari, National Energy Council (DEN) Member Yusra Khan, FCPI Climate Fellow Adhityani Putri, and Think Policy Chief Experiment Officer Andhyta Firselly Utami. (*)
