Indonesian Political, Business & Finance News

Save Energy Today, Sovereign Energy Tomorrow

| | Source: KOMPAS Translated from Indonesian | Energy
Save Energy Today, Sovereign Energy Tomorrow
Image: KOMPAS

JAKARTA, KOMPAS.com — Energy conservation often feels small and individual, such as turning off lights or avoiding traffic jams. Meanwhile, the future of energy sounds grand, like refineries, policies, and international conferences. In reality, both are on the same line, and Indonesia needs both now. That is, when this country imports more than 1 million barrels of oil every day while global oil prices can explode at any moment.

CEO of the Institute for Essential Services Reform (IESR) Fabby Tumiwa assesses that Indonesia’s energy resilience remains vulnerable due to dependence on oil imports reaching around 60 percent of total needs. This situation is becoming increasingly critical following the tensions in the Iran-US conflict, which impacts global supply volatility.

“What must be understood is that we are in a crisis condition. In normal conditions, a 21-day fuel reserve might be safe. But this condition is not normal because there are import disruptions,” said Fabby Tumiwa, CEO of IESR, to Kompas.com on Wednesday (15/4/2026).

Therefore, according to Fabby, energy conservation is not just a frugal habit, but the foundation of the energy future itself. Energy transition, he stressed, is not just about replacing energy sources, but also changing consumption behaviour.

He encourages simple steps, such as reducing the use of private vehicles, switching to alternative transportation, or limiting non-essential trips.

“Besides because it’s hard to get LPG gas, it turns out that using an electric stove provides more cooking options too, and it’s energy-saving as well. Use LPG gas only for large portions,” said Nadine, a private sector worker in Jakarta.

Something similar is planned by Fahri. The distance from home to the office is still reachable, making this man plan to cycle routinely every day. For him, double benefits await: saving energy while maintaining health.

“To the office, it’s close, I want to try using a bicycle to be more economical and the bonus is that if it’s habitual, cycling can make you healthier too,” said Fahri, a Jakarta resident.

The push for change is not without reason. Indonesia’s energy consumption in 2023 reached 1,220 million tonnes of oil equivalent, up 6.29 percent from 2022 and the highest in the last six years, according to the Head of the Data and Information Technology Centre of the Ministry of Energy and Mineral Resources, Chrisnawan Anditya.

The industrial sector dominates with a 45.60 percent share, followed by transportation at 36.74 percent, households at 12.35 percent, and commercial at 4.44 percent.

The pressure is even more evident on the fiscal side. The 2026 State Budget allocates Rp 381.3 trillion for energy subsidies and compensation, including fuel, 3 kg LPG, and electricity, assuming an oil price of 70 US dollars per barrel.

Every increase of 1 US dollar above the assumption adds a burden to the state of Rp 6.8 trillion. If prices break through 100 to 120 US dollars per barrel, the additional cost could reach hundreds of trillions of rupiah.

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