Indonesian Political, Business & Finance News

Eddy Soeparno: Indonesia Too Dependent on Energy Imports

| | Source: REPUBLIKA Translated from Indonesian | Economy
Eddy Soeparno: Indonesia Too Dependent on Energy Imports
Image: REPUBLIKA

Member of the Indonesian House of Representatives Commission XII, Eddy Soeparno, has warned that Indonesia’s high dependence on energy imports remains a major challenge in achieving national energy security. He stated that this condition makes Indonesia vulnerable to geopolitical turmoil, global supply chain disruptions, and world energy price fluctuations.

Eddy noted that Indonesia still imports around 50 percent of its crude oil needs, 38 percent of its fuel, and approximately 90 percent of its liquefied petroleum gas (LPG) requirements, which are largely supplied from the United States. He described this import dependency as a significant piece of unfinished business amid rising global uncertainty.

According to Eddy, energy security can no longer be measured solely by the ability to meet national energy needs. Changes in geopolitical constellations, conflicts in various regions, and international trade dynamics mean that the reliability of energy supply is now just as important as availability.

Because of this, Eddy believes the energy security paradigm must change. The government must not only ensure energy is available but also guarantee the reliability of supply under all circumstances. He stressed that the focus should be on ensuring a reliable energy supply amid rapidly changing global conditions.

Eddy, who also serves as Deputy Speaker of the People’s Consultative Assembly, stated that high import dependency exposes Indonesia to greater risks when global supply chains are disrupted. Policy changes in supplier countries, geopolitical conflicts, or international distribution problems can directly affect domestic energy availability if import reliance is not reduced immediately.

He therefore urged the government to accelerate the development of domestic energy sources. This can be achieved by increasing oil and gas production, developing bioenergy, accelerating the use of new and renewable energy, and implementing LPG substitution programmes to gradually reduce import dependency.

According to him, strengthening the domestic energy mix will not only improve national energy security but also reduce pressure on the state budget, energy subsidies, and the trade balance. The greater the share of energy needs met from domestic sources, the stronger Indonesia’s position will be in facing future global energy shocks.

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