Strengthening Oil and Gas Infrastructure: The Key to Energy Resilience Amid Turmoil
Global geopolitical dynamics are once again testing the energy resilience of many countries. Conflicts in the Middle East, the Russia-Ukraine war, and potential disruptions to global energy distribution routes serve as reminders that energy is not merely a commodity but the foundation of economic stability and national sovereignty.
In this context, Indonesia should count itself fortunate. Compared to the situation several years ago, particularly around 2019, our position today is relatively more prepared. This is inseparable from the acceleration of energy infrastructure development, particularly in the upstream to downstream oil and gas (migas) sector.
Upstream Migas: Production and Infrastructure Beginning to Consolidate
In recent years, several strategic upstream migas projects have been successfully completed and are starting to make significant contributions to the national energy supply. Some of these projects include:
• Jambaran Tiung Biru (JTB) gas field
• Husky project
• ExxonMobil Cepu’s production increase
• ENI gas fields (Jangkrik and Merakes)
• Major Tangguh Train-3 project
• Strategic pipeline infrastructure such as Cisem and Dusem (Dumai-Sei Mangkei)
These achievements form an important foundation in strengthening domestic energy production while reducing reliance on imports.
Looking ahead, strengthening energy connectivity is also being continuously promoted through:
• Development of the Rokan Working Area crude oil pipeline
• Construction of the Senipah-Balikpapan gas pipeline
• And acceleration of the household gas network to a target of 1 million household connections (SR) within three years
Refineries and Gasification: Enhancing Value-Added and Efficiency
Energy resilience is not only determined by production but also by the ability to process that energy. Currently, global indicators show a surge in crack spread from the normal range of US$8-12 per barrel to around US$45-55 per barrel. This underscores that countries with strong refinery capacities will hold a far more strategic position.
Indonesia has completed several important projects, namely:
• RDMP Balongan, Balikpapan, and Cilacap
• Lawe-lawe Crude Oil Terminal
• Dumai Platformer
• Integration of gas pipelines to refineries that boosts LPG production
Additionally, the development of gasification-based power plants that are already operational represents a concrete step in improving energy efficiency while reducing dependence on imported energy.
Strategic future projects like WNTS-Pemping (West Natuna Transportation System) are also crucial for strengthening the national gas distribution network and opening up new market potential.
Jargas: Energy for the People
On the downstream side, the household gas network (jargas) programme continues to show progress. As of July, around 119,000 household connections (SR) have been installed, with a target of reaching 1 million SR in the next three years.
This programme is an important part of the strategy to:
• Reduce energy subsidies
• Improve household efficiency
• And optimally utilise domestic gas
Key Element: Synergy and Collaboration
Although energy infrastructure achievements are quite significant, future challenges remain substantial. Energy development can no longer proceed on a sectoral basis. Consolidation and orchestration are needed between the government, state-owned enterprises (BUMN), private sector, and financing institutions.
In this context, the presence of the Badan Pengelola Investasi Daya Anagata Nusantara (Danantara) as Indonesia’s sovereign wealth fund (SWF) is highly strategic. Danantara is expected to pay greater attention to the energy sector, particularly:
• Financing migas infrastructure projects
• Accelerating downstream processing
• Long-term investments based on energy resilience
Because energy is not just about economics, but also sovereignty and the nation’s future.
Conclusion
Energy resilience is the result of consistent long-term development, not short-term policies. What has been built today—from upstream to downstream—forms an important foundation. However, in an increasingly uncertain world, Indonesia must continue to strengthen the integration of its national energy system.
The key lies in one thing: solid collaboration and the courage to prioritise energy as a national strategic priority. Because ultimately, a strong nation is one that can ensure its energy: sufficient, affordable, and sovereign.