Government Accelerates Renewable Energy Transition Amid Global Geopolitical Uncertainty
The Indonesian Government is accelerating its national energy transition away from fossil fuel dependency towards new renewable energy (EBT), particularly solar power.
This policy emerged after President Prabowo Subianto instructed his administration, specifically the New Renewable Energy, Renewable Energy, and Energy Conversion Task Force (Satgas EBTKE), to expedite the overhaul of the national energy system amid global geopolitical uncertainty.
The directive followed government assessment of potential disruptions to global energy supplies due to tensions in the West Asian or Middle Eastern region, including the situation in strategic global energy shipping routes such as the Strait of Hormuz.
Energy and Mineral Resources Minister Bahlil Lahadalia explained that accelerating the energy transition forms part of the national strategy to anticipate potential oil supply crises.
“This is one of the matters we also discussed during the meeting with the President, that there must be alternatives available when the Strait of Hormuz situation remains as it is,” Bahlil told journalists after meeting the President at the Presidential Palace in Jakarta on Thursday (12 March).
In that meeting, Bahlil also reported the results of the inaugural Satgas EBTKE meeting, attended by eight ministers, senior officials from the Energy and Mineral Resources Ministry, and executives from state-owned PT PLN. The task force, he said, has been mandated to promptly execute various steps to accelerate energy transition.
One key measure being prepared is the gradual shutdown of fossil fuel-based power plants, particularly diesel power plants (PLTD) and coal-fired steam power plants (PLTU) still using diesel fuel. However, this operational shutdown will be conducted in parallel with the construction of renewable energy-based power plants.
“Build the replacement first. If operations are stopped before the new plant is available, of course there will be no electricity supply. So it happens in parallel—once the new plant operates commercially or reaches commercial operation date (COD), the diesel plant is immediately shut down,” said Bahlil.
He stressed that in the uncertain global geopolitical situation, Indonesia cannot be entirely dependent on imported fossil energy. Therefore, the government is working to optimise all domestic energy potential that can be developed into new renewable energy sources.
On another front, the acceleration of energy transition is considered not merely an energy security agenda but also a strategic opportunity for national industrialisation.
Vice Chairman of the People’s Consultative Assembly (MPR) Eddy Soeparno stressed that accelerating energy transition must become a national industrial development strategy that provides direct benefits to the domestic manufacturing sector whilst opening new employment opportunities.
According to him, Indonesia possesses substantial comparative advantage with renewable energy potential reaching thousands of gigawatts, derived from solar, hydroelectric, wind, bioenergy, and geothermal sources.
“Green jobs will create opportunities for engineers, technicians, battery experts, solar panel manufacturing workers, battery energy storage system operators, and research and innovation professionals. Young Indonesians must be the main actors and not merely spectators in the transition towards clean energy,” said Eddy.
He added that Indonesia also possesses strategic advantage in critical minerals such as nickel and copper, which are important components in electric vehicle battery industry, battery energy storage systems (BESS), and various renewable energy infrastructure.