Bahlil Reveals Outcomes of Meeting with Prabowo Amid Escalating Middle East Tensions

The government is intensifying natural resource downstreaming programmes as a strategic effort to curb dependence on energy imports amid escalating US-Iran conflicts. This step was affirmed during a meeting between President Prabowo Subianto and Minister of Energy and Mineral Resources Bahlil Lahadalia on Wednesday (25/3), which discussed accelerating downstreaming projects and optimising domestic energy utilisation to enhance added value domestically and strengthen energy resilience. In the meeting, Bahlil reported that of the 20 first-phase downstreaming projects, some have entered the groundbreaking stage, while the rest are scheduled to begin next month. “We are also adding 13 downstreaming items with a total investment of approximately Rp239 trillion, which we will finalise in discussions,” Bahlil stated in an official remark on Thursday (26/3). Besides downstreaming, the government will optimise other domestic energy potentials, including ethanol and biodiesel based on crude palm oil (CPO), as part of efforts to reduce import reliance. “The President has instructed us to optimise all available energy potentials, whether ethanol, biodiesel, or CPO,” he explained. On that occasion, Bahlil also reported the latest conditions of energy and mineral commodity prices, particularly coal and nickel. The Golkar Party politician emphasised that there has been no policy change regarding the management of both commodities so far, while the government continues to monitor global market dynamics. Nevertheless, the government remains open to measured production relaxations for coal and nickel, but with a controlled approach. Bahlil stressed that such policies must not trigger oversupply that would depress national commodity prices in the global market. “Measured relaxation means limited and still maintaining supply and demand, as well as prices,” he added. The government has signalled adjustments to the Nickel Mineral Reference Price (HPM). According to Bahlil, this policy is being considered to ensure the country obtains a fairer value from the utilisation of these strategic minerals. “Most likely, the HPM for nickel will be increased,” he said. Furthermore, Bahlil explained that the President also provided specific directives to prioritise national interests in natural resource management. The Head of State emphasised the importance of safeguarding natural resources as strategic national assets while encouraging the optimisation of state revenues from the mineral sector. “The President has instructed me to pay attention to the country’s interests, with priorities above all else. The President also ordered us to seek revenue sources in the mineral sector that have previously been unfair to the country,” Bahlil clarified. He affirmed that 2026 will be a crucial year for proving Indonesia’s mineral sovereignty. According to Bahlil, the government wants to ensure that natural resources are no longer sold cheaply just for production volume, but instead provide maximum added value for the nation. “What we want ideally is good prices, good production, and plenty of it. But if not, don’t sell our goods cheaply,” he concluded.