Indonesian Political, Business & Finance News

MPR pushes for strengthening the state's role in safeguarding energy sovereignty

| Source: ANTARA_ID Translated from Indonesian | Energy
MPR pushes for strengthening the state's role in safeguarding energy sovereignty
Image: ANTARA_ID

Jakarta (ANTARA) - Deputy Speaker of the MPR RI Edhie Baskoro Yudhoyono is pushing for the strengthening of the state’s role in the governance of the national oil and gas (migas) sector to safeguard energy sovereignty amid global geopolitical pressures.

In a discussion forum at the DPR RI, Ibas assessed that migas issues no longer stand alone but are directly linked to national resilience across various sectors.

“According to me, today we want to talk about migas, as I mentioned earlier, what we are actually talking about is the resilience of our nation,” he stated in his remarks in Jakarta on Wednesday.

Ibas explained that global conflicts, including those in the Middle East and Eastern Europe, are impacting the world’s energy supply chain. Strategic routes such as the Strait of Hormuz, through which around 25 percent of global energy distribution passes, are also triggering price pressures and inflation.

According to him, these impacts are not only felt in the energy sector but also extend to food, logistics, and the cost of living for the public.

“Energy is not just about fuel, but also concerns LPG, food distribution, and the cost of living for the public,” he said.

Ibas emphasised that strengthening the state’s role aligns with the mandate of Article 33 of the 1945 Constitution, which positions the state as the manager of natural resources for the greatest prosperity of the people.

“A market without regulation will give birth to inequality,” he stated.

In his presentation, Ibas advocated for several strategic steps, starting from increasing national migas production through investment and exploration, to improving subsidy policies to ensure they are targeted effectively.

“The first thing, of course, is how we can increase our national production,” he said.

Additionally, he stressed the importance of strengthening state-owned enterprises (BUMNs) in the energy sector so they can compete globally, as well as building national energy reserves to maintain supply resilience.

“The fourth is how we can also build our national energy reserves,” he stated.

Ibas also urged the acceleration of the energy transition, including the development of new renewable energy sources such as geothermal, solar, and hydropower.

“Fifth, how we together oversee the acceleration of the energy transition,” he said.

On the other hand, Ibas highlighted the importance of regulatory reforms and investment facilitation to make the migas sector more competitive and capable of attracting sustainable investment.

“What is needed today is our courage and continuity in maintaining policies with a clear direction,” stated Ibas.

Several experts present at the discussion also emphasised the importance of improving governance and revising regulations, including Law No. 22 of 2001 on Migas, to make it more adaptive to global challenges and national energy needs.

Strengthening the state’s role, cross-sectoral synergy, and regulatory certainty are seen as key to realising national energy resilience and sovereignty in the future.

The FGD was attended by members of the Democrat Party Faction, including Sartono Hutomo, Zulfikar Hamonangan, Achmad, and Nurwayah.

Several experts and academics also attended as speakers, namely Satya Widya Yudha, Tutuka Ariadji, Komaidi Notonegoro, Abra Talattov, Wezia Berkademi, and Teuku Riefky.

The presence of these stakeholders strengthens cross-sectoral collaboration in formulating more comprehensive, adaptive migas policies oriented towards national interests.

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