Government Ensures Stable and Affordable Energy Supply for the Public

The challenges remain for petrol and LPG commodities, which still depend on the global market. Jakarta (ANTARA) - The Indonesian government guarantees that energy supplies will remain available and affordable for the public, while continuously working to reduce energy import dependency by increasing domestic refinery capacity. “Energy resilience is not just about supply, but also about sovereignty and national economic sustainability. The government will continue to ensure that energy remains available and affordable for the public,” said Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia in a podcast quoted in Jakarta on Tuesday. In efforts to strengthen domestic energy, Bahlil stated that his side is developing LPG substitution through the downstreaming of coal into dimethyl ether (DME). This step is expected to gradually reduce import dependency, although it requires time and significant investment. “The challenges remain for petrol and LPG commodities that still depend on the global market,” he said. Furthermore, Bahlil stated that the government is continuously strengthening strategic measures to maintain energy supplies and protect the public’s purchasing power. Based on data he has, he said Indonesia currently requires around 1.6 million barrels of oil per day, while domestic production only reaches about 605,000 barrels per day. “This condition makes Indonesia still reliant on imports, with nearly one million barrels per day coming from abroad. About 20–25 percent of it passes through the Strait of Hormuz, a vital route now affected by geopolitical tensions,” said Bahlil. Prabowo stated that these steps will position Indonesia in a safer position to face global energy supply uncertainties. Then, on Tuesday (31/3), Coordinating Minister for the Economy Airlangga Hartarto announced that Indonesia will implement the B50 policy starting 1 July 2026 to save subsidies worth Rp48 trillion. He conveyed that Pertamina is ready to implement the policy. The B50 implementation policy, said Airlangga, has the potential to reduce the use of fossil diesel fuel by 4 million kilolitres (KL) in one year.