Economists View Agreements with Russia and France as Safeguarding Energy Resilience
Jakarta (ANTARA) - Executive Director of the Center of Economic and Law Studies (Celios), Bhima Yudhistira, assesses that Indonesia’s diplomatic efforts led by President Prabowo Subianto to Russia and France hold strategic relevance in maintaining energy resilience amid geopolitical dynamics.
Bhima, contacted in Jakarta on Thursday, explained that the visit to Russia remains within the framework of diplomacy to secure oil supplies, while the approach to France is more directed towards the defence sector.
“PLN and Danantara are expected to promptly follow up on renewable energy investments as they are relevant to the global energy crisis,” he said.
He views the context of this cooperation as inseparable from the war economy situation, namely economic collaboration occurring amid global tensions and conflicts.
According to him, plans to purchase oil from Russia need to consider several business feasibility aspects, such as logistics costs, reference prices, and compatibility with domestic refineries.
A price comparison with other supplying countries like Azerbaijan also needs to be conducted to ensure efficiency.
Additionally, Bhima warns of potential risks of retaliation or sanctions related to Indonesia’s commitments under the Agreement on Reciprocal Trade (ART) scheme, which requires avoiding cooperation with sanctioned countries.
On the other hand, the outcomes of the visit to France are assessed as needing focus on increasing investments to support the energy transition, by strengthening the implementation of the Just Energy Transition Partnership (JETP).
Furthermore, Bhima assesses that France possesses several technological advantages relevant to Indonesia in accelerating the energy transition. Ocean wave energy technology is one potential that can be developed, given Indonesia’s very long coastline.
Additionally, the development of smart grid-based solar panels and wind power technology is deemed suitable for eastern Indonesia.
Therefore, he encourages PT PLN (Persero) and Danantara to immediately follow up on these renewable energy investment opportunities. This step is considered important to address the challenges of the global energy crisis while strengthening national energy resilience.
Cabinet Secretary Teddy Indra Wijaya stated that President Prabowo Subianto brought home various strategic partnership agreements from his state visits to Russia and France.
“Upon arriving back in the homeland, President Prabowo brings home souvenirs in the form of various strategic agreements,” Teddy said when confirmed by ANTARA on Wednesday (15/4).
In Moscow, Teddy said, Prabowo met with Russian President Vladimir Putin. In that meeting, the two state leaders affirmed the enhancement of cooperation related to long-term national energy supplies, including crude oil reserves and LPG.
President Prabowo also tasked the Minister of Energy and Mineral Resources, Bahlil Lahadalia, to meet with Putin’s special envoy and Russian Energy Minister Sergey Tsivilev for further detailed discussions on this cooperation in Moscow.
Meanwhile, in Paris, Teddy conveyed that President Prabowo met with French President Emmanuel Macron to discuss enhancing cooperation in the fields of energy, education, digital communications, and long-term economic investment.
The Cabinet Secretary stated that the visits to these two countries have yielded concrete achievements for Indonesia, considering that both are major countries with abundant resources and play important roles on the global stage.