Safeguarding Contributions to Energy Sovereignty

Indonesia needs to learn from history that energy independence provides a nation with the space to make strategic decisions freely. When launching the 50 percent biodiesel mandate (B50) recently, President Prabowo emphasised that the programme’s implementation is not merely a technological achievement, but tangible proof of national sovereignty in the energy sector. According to Prabowo, the B50 programme demonstrates that Indonesia is capable of utilising its own natural wealth for the greatest benefit of the people. This principle aligns with Article 33, paragraph (3) of the 1945 Constitution, which mandates that the earth, water, and natural resources contained within them shall be controlled by the state and used for the greatest prosperity of the people. These natural resources certainly include energy resources, including oil and gas. The constitution clearly grants the state the authority to regulate and utilise its natural resources for national interests, without intervention from other countries or international organisations. Previously, Prabowo also stated that Indonesia could soon achieve energy independence within the next five years. He believes energy plays a crucial role in eradicating poverty from Indonesian soil while transforming the nation into a modern and developed country. Therefore, Prabowo has set an ambitious target to realise energy independence through a measurable roadmap. The effort to achieve energy sovereignty requires contributions from all stakeholders, ranging from the government, state-owned enterprises, business actors, universities, to the community. As the national energy state-owned enterprise, PT Pertamina (Persero), along with its business entities, including PT Pertamina Hulu Energi (PHE), holds a vital role in maintaining the sustainability of national oil and gas production while strengthening energy security. Amidst the challenges of natural production decline in oil and gas fields, the upstream sector is required to continuously increase productivity through exploration, new field development, optimisation of existing fields, and the application of increasingly efficient technology. In this context, PHE, as Pertamina’s upstream subholding, is one of the companies contributing to safeguarding the national energy supply. According to PHE Corporate Secretary Hermansyah Y. Nasroen, throughout its 19-year journey, the company remains committed to being an upstream oil and gas company at the forefront of realising national energy sovereignty. Currently, PHE contributes approximately 65 percent to national oil production and 37 percent to national gas production. The company also operates around 27 percent of oil and gas blocks in Indonesia.