{
    "success": true,
    "data": {
        "id": 1590262,
        "msgid": "ri-us-art-agreement-risks-deepening-indonesias-dependence-on-fossil-fuel-energy-1772708676",
        "date": "2026-03-05 17:10:06",
        "title": "RI\u2013US ART Agreement Risks Deepening Indonesia's Dependence on Fossil Fuel Energy",
        "author": "Gita Amanda",
        "source": "REPUBLIKA",
        "tags": "",
        "topic": "Politics",
        "summary": "Analyst Bhima Yudhistira Adhinegara warns that ratifying the Agreement on Reciprocal Trade (ART) with the United States could deepen Indonesia's dependence on fossil fuels, risking fossil fuel lock-in amid an urgent energy transition. He notes Indonesia's oil stock resilience is only around 20 days and argues the ART could raise domestic energy costs and subsidy burdens, while promoting biodiesel and bioethanol expansion that threaten forests and land use. The discussion highlights concerns that the agreement may divert policy from electrification toward continued fossil fuel imports and agricultural commodity expansion.",
        "content": "<p>Executive Director of the Center of Economic and Law Studies\n(Celios), Bhima Yudhistira Adhinegara, said that the plan to ratify the\nAgreement on Reciprocal Trade (ART) between Indonesia and the United\nStates could deepen Indonesia\u2019s dependence on fossil fuels. The\nagreement is feared to create fossil fuel lock-in or energy policy\nlock-in toward fossil fuels such as oil and natural gas in the midst of\nan urgent need to accelerate the transition to clean energy. \u201cFirstly,\non fossil fuel lock-in, we will continue to rely on oil and gas,\nespecially given the current Middle East conflict. This should be a\nmoment to rethink whether we should keep importing, so that Indonesia\u2019s\neconomy remains dependent on BBM (fuel oil).\u201d Bhima said during an\nonline discussion entitled \u201cAssessing the Impact of the RI-US Trade\nAgreement: Broadening Opportunities or Narrowing Sovereignty over\nNatural Resources, Food &amp; the Energy Transition,\u201d on Thursday (5\nMarch 2026). He assessed that global geopolitics should be a momentum\nfor Indonesia to reduce dependence on imported fuel oil, not strengthen\nit. According to Bhima, Indonesia is currently a net oil importer with\nrelatively limited BBM reserves. He noted that the national energy stock\nresilience is only about 20 days, so any disruption to global supply\ncould directly trigger domestic instability. In several regions, signs\nof supply pressure have already appeared. Bhima cited queues at fuel\nstations in Aceh that began to form ahead of Ramadan and the Eid al-Fitr\ntravel period. This phenomenon demonstrates the vulnerability of the\nnational energy system, which remains heavily dependent on imported BBM.\nAgainst this backdrop, the government is reportedly considering\nincreasing energy imports through the ART framework. Bhima said the\nvalue of planned oil and gas imports could reach around Rp 253 trillion,\nincluding crude oil and liquefied petroleum gas (LPG). He argued that\nthe policy would not only raise energy dependence but could also\nincrease costs. If Indonesia imports oil from the United States, the\nprice reaching the domestic market is expected to be higher than imports\nfrom Singapore. \u201cIf we are importing oil from both, the price difference\ncould be two to six US dollars per barrel compared with importing from\nSingapore,\u201d Bhima said. He explained that the price difference arises\nfrom added logistics, insurance, and various shipping components. The\nimpact would be felt directly by PT Pertamina as the state-owned\nenterprise responsible for distributing BBM nationally. Bhima estimated\nthat this cost difference could reach about Rp 11 trillion per year for\nPertamina. This additional burden could ultimately raise the country\u2019s\nsubsidy and energy compensation requirements. \u201cThis agreement could\ntrigger losses in terms of subsidy costs and BBM compensation that are\nfar higher,\u201d he said. In addition to strengthening dependence on fossil\nenergy, Bhima warned against policy narratives that could divert the\nenergy transition. He noted calls to increase the biodiesel blend as a\nsolution to the energy crisis, instead of accelerating electrification\nof transport and power generation. According to Bhima, such a strategy\nrisks triggering new environmental impacts. Expanding palm oil\nplantations to meet biodiesel demand could accelerate deforestation and\nland-use conflicts. He cited the revocation of palm oil company licences\nfollowing environmental disasters in Sumatra as an example of ecological\nproblems that commodity expansion can cause. If biodiesel policy\ncontinues to expand, pressure on forests is expected to rise. \u201cNot that\nwe are practicing ecological repentance, but with this ART we face a\ndouble hit. Oil imports will continue, while biodiesel and bioethanol\nblending are also being promoted,\u201d he said. Bhima also highlighted the\npotential expansion of bioethanol projects that could trigger new land\nclearing, especially in Merauke. Under the trade cooperation framework,\nthe United States would push Indonesia to import corn-based bioethanol\nwhile also increasing the domestic bioethanol blend to 10 per cent by\n2030.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/ri-us-art-agreement-risks-deepening-indonesias-dependence-on-fossil-fuel-energy-1772708676",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}