Jakarta, CNBC Indonesia - The Indonesian government is intensifying\nefforts to achieve energy security, particularly in light of political\ntensions in the Middle East. Minister of Energy and Mineral Resources\nBahlil Lahadalia acknowledged the urgency, recalling Indonesia\u2019s peak\noil production of 1.6 million barrels per day in 1996-1997. \u201cThat was\nthe golden era of the energy sector, and 43% of our state budget in\n1996-1997 came from oil and gas,\u201d Bahlil stated at the CNBC Indonesia\nEnergy Forum in Jakarta on Thursday (25\/6\/2026).<\/p>\n
Today, rising global uncertainty has disrupted energy distribution in\nmany countries, causing significant price spikes. Indonesia currently\nimports around 1 million barrels per day to meet domestic demand. In\nresponse, the government is pursuing several strategies to boost\ndomestic oil production. These include optimising existing fields with\nenhanced technology such as fracking, Enhanced Oil Recovery (EOR), and\nhorizontal drilling. The government also plans to reactivate idle wells;\nout of 7,345 idle wells with hydrocarbon potential, 792 were reactivated\nin 2025, and a further 5,771 are being considered for cooperation\nagreements to increase output. \u201cWe have no choice but to accelerate\nconstruction to enable production. This approach is being implemented\npartly in Java and partly in Papua,\u201d Bahlil explained. Additionally, the\ngovernment will push for exploration of oil and gas potential in Eastern\nIndonesia through more attractive cooperation mechanisms and incentives,\nincluding the offering of 118 potential oil and gas blocks.<\/p>\n
Alongside fossil fuel development, the government is advancing new\nand renewable energy (EBT) programmes. National Energy Council member\nMohamad Fadhil revealed that President Prabowo Subianto is pursuing an\nambitious project to build a 100 GW solar power plant (PLTS) at an\nestimated cost of Rp1,800 trillion. The project aims for energy\nself-sufficiency, reducing reliance on diesel power plants in Eastern\nIndonesia, and driving the energy transition. Other programmes include\nconverting 120 million motorcycles to electric power and implementing\nthe B50 biodiesel mandate starting 1 July 2026. Fadhil stressed the\nimportance of maintaining consistency in the energy transition even if\ngeopolitical conditions ease. \u201cWe must not be complacent. The challenge\nis to remain consistent when the situation calms down. We encourage all\nparties to consistently implement this energy transition programme\ndespite future uncertainties,\u201d he said.<\/p>\n
Chairman of the House of Representatives Commission XII, Bambang\nPatijaya, affirmed that Indonesia\u2019s energy resilience and supply remain\nsecure despite global challenges. He noted that JPMorgan recently ranked\nIndonesia second out of 52 countries for energy resilience. \u201cFrom March\nuntil now, Indonesia\u2019s energy resilience has been fine. Despite\nchallenges, all problems can be overcome because we are under pressure,\u201d\nBambang said. To ensure secure supply, regulations now allow Lemigas to\nact as an extension of the state, facilitating direct procurement\nagreements with partner countries. \u201cThe advantage is that Lemigas is\nmandated to conduct direct procurement with various criteria, and all\ngovernment aggregation guarantees supply availability,\u201d he added.<\/p>\n
From a corporate perspective, Pertamina Vice President Director Oki\nMuraza outlined mitigation measures to secure energy supply and maintain\ndomestic resilience. Pertamina is building defensive layers, pursuing\navailability, and increasing upstream production to reduce crude oil\nimports. \u201cDownstream, we are diversifying by reducing diesel with\nB40-B50, cutting petrol imports and replacing them with ethanol.\nGeothermal also contributes as a primary source,\u201d Oki stated. He also\nconfirmed that Pertamina continuously consults with the DPR and the\ngovernment regarding affordability to ensure measures benefit the public\nand keep activities running. Meanwhile, Pertamina Hulu Rokan Vice\nPresident Exploration Suprayitno Adhi Nugroho highlighted efforts to\ncapture opportunities from wells in the Rokan Block, citing successful\nexploration at Astrea and Pinang East. The Pinang East area alone now\ncontributes 2,500 barrels of oil per day. \u201cIt truly is a game changer;\nit turns out that in a mature block, we still have hidden potential,\u201d he\nexplained. The company is pursuing a firm work commitment (KKP)\ninvolving massive exploration, seismic surveys, and Enhanced Oil\nRecovery (EOR) programmes to increase national oil and gas reserves and\nproduction.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indonesias-concrete-actions-to-safeguard-energy-security-1782467497", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }