Accelerating Downstream Processing Seen as Key to Achieving Energy Sovereignty
Jakarta (ANTARA) - An expert from the Ministry of Energy and Mineral Resources (ESDM), Satya Hangga Yudha Widya Putra, has assessed that accelerating downstreaming is a concrete step towards achieving energy sovereignty in the country.
According to his statement in Jakarta on Tuesday, Indonesia must ensure that natural resources are managed domestically to create added value for the nation, rather than simply exporting raw materials.
“The acceleration of downstreaming through the National Downstreaming and Energy Security Task Force, led by the Minister of ESDM Bahliment Lahadalia, is our concrete step towards energy sovereignty,” said Hangga during a public lecture presented to students of Pertamina University and Budi Luhur University in Jakarta on Tuesday.
The public lecture, organised by the Indonesian Association of International Relations (AIHII) in collaboration with the International Relations Study Programme of Pertamina University, featured national energy experts and practitioners to analyse Indonesia’s strategic position in facing geopolitical escalations in the Middle East.
In his presentation, Hangga emphasised that the energy sector is currently in a highly dynamic state. With an economic growth target of 8 per cent and a population reaching 280 million, national energy consumption is certain to continue increasing significantly.
“Energy security is the main pillar of Astacita number 2, while number 5 focuses on downstreaming,” he stated.
Hangga also highlighted the challenges regarding national oil lifting. Although Indonesia once reached a production peak of 1.5 million barrels per day in 1977, the figure currently stands at 600,000 barrels per day due to mature oil fields.
As a solution, the government continues to optimise oil absorption from community wells and is working to reduce diesel imports through the Balikpapan Refinery Development Master Plan (RDMP). However, the 80 per cent dependence on imported LPG remains a priority that must be addressed through pipeline gas substitution and the development of CNG for the industrial sector.
Responding to student questions regarding the impact of the closure of the Strait of Hormuz on subsidised fuel prices, Hangga stated that as a non-aligned nation, Indonesia continues to expand cooperation with various countries outside the Middle East to diversify energy sources.
The government has also guaranteed that energy stocks will remain secure until the end of 2026 and that the prices of subsidised fuel will be kept stable to protect public purchasing power, even as the dynamics of the Rupiah against the Dollar are being closely monitored.
On that occasion, Hangga invited the younger generation, particularly students, to contribute proactively through research and policy studies.
“The future of national energy is in the hands of the youth, and there must be no sectoral ego. We need cross-generational synergy between regulators, academics, and business players to solve the challenges of national energy sovereignty,” he said.