Reading Opportunities for Strengthening the Energy and Mineral Resources Sector Amid Geopolitical Dynamics
Not many countries are blessed with natural resources as complete as Indonesia’s. From oil and natural gas, coal, nickel, copper, bauxite, to tin, plus the potential for renewable energy in the form of geothermal, hydropower, wind, solar, and bioenergy, Indonesia possesses nearly all the commodities the world is currently vying for. Yet history also shows that natural resource wealth does not automatically generate prosperity. Many countries with abundant natural reserves have failed to transform them into a foundation for long-term development. Conversely, some relatively resource-poor nations have successfully built strong economies, robust institutions, and equitable welfare. The difference often lies not in what is owned, but in the ability to read global changes, secure national interests, and translate available wealth into tangible benefits for society.
Indonesia today stands at a highly decisive juncture. The world is undergoing major changes that may occur only once in a generation. Global competition is no longer solely determined by military might or economic size, but also by the ability to master energy, critical minerals, technology, and strategic supply chains. Major powers are racing to secure the resources needed for electric vehicles, artificial intelligence, data centres, semiconductors, energy storage systems, and other industries of the future. In many respects, we are witnessing the birth of a new economic order that will determine who leads and who is left behind in the coming decades.
In this context, Indonesia is in a truly strategic position. When the world needs nickel for batteries, Indonesia holds the largest reserves. When the world needs copper for electrical grids and digital technology, Indonesia possesses enormous potential. When the world seeks cleaner and more sustainable energy sources, Indonesia has one of the world’s largest geothermal reserves, abundant hydropower potential, and solar and wind resources spread across various regions. This is where the energy and mineral resources sector must be placed in a broader perspective. Too often, energy is viewed merely as a matter of electricity supply, oil production, or mining activities. In reality, energy is the foundation of national development. Energy determines industrial competitiveness, logistics costs, the ability to attract investment, and even economic stability and national resilience.
Therefore, the energy and mineral resources sector must not only function as a resource manager. This sector must become the driver of Indonesia’s economic transformation. Every energy and mineral policy needs to be measured by its ability to create added value, strengthen national industry, open employment opportunities, increase productivity, and enhance public welfare. Indonesia should be grateful for having taken an important step through its downstreaming policy. This policy has changed the way the world views Indonesia. For the first time in a long while, Indonesia is no longer known merely as an exporter of raw materials, but is beginning to be seen as a country striving to build its own industrial value chain.
However, this journey is still long. Downstreaming must not stop at building processing facilities or merely increasing export value. Downstreaming must evolve into a comprehensive national industrialisation strategy. The ultimate goal is not just to produce intermediate products, but to build an industrial ecosystem capable of generating technology, creating quality jobs, and fostering national companies that can compete globally. Indonesia must dare to aspire to become a future energy manufacturing hub in Asia, not just a supplier of raw materials for other nations. At the same time, Indonesia must also strengthen its energy resilience. An increasingly uncertain world requires every country to be capable of facing various possible supply disruptions. Geopolitical conflicts occurring in various regions demonstrate that energy security cannot be taken for granted. A country without a robust energy system will be more vulnerable to global economic shocks.
Therefore, building energy resilience must be a continuous agenda. Indonesia needs a system capable of guaranteeing energy availability in all situations through strengthening strategic reserves, building integrated infrastructure, diversifying energy sources, and enhancing the reliability of the national electricity grid. Energy resilience is not merely a sectoral issue; it is part of national resilience. In the context of the energy transition, Indonesia also needs to adopt a pragmatic approach oriented towards national interests. The energy transition is not the end goal. The ultimate goals are sustainable economic growth, improved public welfare, and reduced environmental risks for future generations. Thus, the transition must be carried out by considering the realities of national development. Indonesia cannot simply copy the models of other countries. We must build a transition model that suits the characteristics of our economy, geography, and societal needs. Renewable energy must be accelerated, but this acceleration must proceed in tandem with the development of transmission networks, the growth of supporting industries, the enhancement of human resource capacity, and the strengthening of national competitiveness. In this way, the energy transition will not only produce cleaner electricity but also create new economic opportunities.