Eddy Soeparno Discusses the Urgency of Energy Transition for Economic Growth

Deputy Speaker of the People’s Consultative Assembly (MPR) from the National Mandate Party (PAN) faction, Eddy Soeparno, has stressed that amidst increasing global geopolitical uncertainty, Indonesia must accelerate its move towards energy self-sufficiency to avoid continued dependence on energy imports, which are vulnerable to global political and economic dynamics. According to him, various geopolitical conflicts and tensions in recent years have shown that energy security is now an inseparable part of economic and national resilience. This was conveyed by Eddy while speaking as a keynote speaker at the DBS-CNBC Indonesia Morning Coffee discussion titled ‘Indonesia’s Energy Security Amidst the Global Geopolitical Crisis: Challenges, Potential, and Policy Direction’ in Jakarta. “Amidst increasing global geopolitical uncertainty, Indonesia cannot continue to depend on imported energy. Energy self-sufficiency must become a national priority because it concerns economic stability, industrial competitiveness, and public welfare,” Eddy said on Thursday (23/7/2026). He emphasised that the energy transition must be a strategic instrument to achieve three goals simultaneously. First, strengthening energy security through diversification of energy sources and reducing import dependency. Second, becoming a driving force for national economic growth towards the 8 percent target through the creation of new investment, industrial downstreaming, and green jobs. “Third, fulfilling Indonesia’s commitment to reducing carbon emissions and accelerating decarbonisation towards sustainable development. These three objectives, according to Eddy, are not conflicting agendas but can be achieved simultaneously through appropriate policies,” he continued. The PAN Deputy Chairman explained that the path to energy self-sufficiency must be pursued through accelerating the energy transition based on the strength of national resources. Indonesia has enormous potential for new and renewable energy, ranging from solar, geothermal, hydro, and wind power to bioenergy, which must be optimally utilised to reduce dependence on imported fossil energy. In addition to accelerating the development of new and renewable energy, Eddy assessed that governance reform in the energy sector must also be a priority. The preparation of a national oil and gas balance sheet, improvement of the Domestic Market Obligation (DMO) mechanism, increased investment certainty, and strengthening of national energy planning are necessary to make Indonesia’s energy system more efficient, resilient, and capable of anticipating various global risks. “Energy security is built by increasing production capacity while simultaneously improving good governance, regulatory certainty, and long-term planning so that Indonesia is ready to face various global challenges,” he concluded.