Jakarta—Energy self-sufficiency is one of President Prabowo Subianto’s main focuses, but experts say that without supportive regulations and ease of investment, the target will be difficult to achieve. The transition to renewable energy in Indonesia requires full government support, especially in creating an investment climate conducive to the sector’s development.
The Indonesia Center for Renewable Energy Studies (ICRES) Chairman, Surya Darma, expressed his views after listening to President Prabowo’s inauguration speech at the MPR/DPR Building on Sunday, October 20. According to Surya, the energy self-sufficiency promoted by the President in his speech emphasised the importance of national energy independence, but it needs to be accompanied by pro-investment policies, especially in renewable energy.
“Energy self-sufficiency can only be achieved if we create a favourable environment for renewable energy investment. The government must ensure the right regulations and incentives to attract investors,” Surya said.
Surya emphasised that developing renewable energy, such as geothermal and solar power, is key to achieving energy self-sufficiency and supporting the transition to net-zero emissions (NZE) by 2060. However, overlapping and inconsistent regulations often hinder the development of clean energy projects.
“Existing regulations must be harmonized to make them more attractive to investors, especially amid limited state budgets. We cannot rely solely on state budget funds,” added the former Indonesian Renewable Energy Society (METI) Chairman.
In his speech, President Prabowo emphasised that Indonesia must be energy-independent. According to him, the country must rely on something other than energy imports from abroad. However, although Indonesia has abundant renewable energy potential, the development of this sector is often hampered by unfavourable regulations.
Surya believes that accelerating the use of renewable energy requires improved policies that can attract more investors. “The House of Representatives and the government need to immediately finalise the revision of the National Energy Policy (KEN), which has long been discussed as being in line with the green economy target,” he explained.
Surya also highlighted the importance of cooperation between the government, private sector, and financial institutions to support renewable energy investment. He pointed out that geothermal projects that have been running in several regions in Indonesia still need more support in terms of funding and ease of regulation.
In addition to regulation, Surya emphasised the importance of private sector involvement in the energy transition. “We cannot rely on the state budget alone. He said that the private sector must be encouraged to participate more actively through direct investment and partnerships with the government,” he said.
Although the government has issued Presidential Regulation No. 112/2022, targeting an increase in the renewable energy mix, implementation on the ground still needs to be improved. According to Surya, many investors still await certainty regarding incentives and unclear carbon tax regulations.
“If the government is serious about the NZE target and energy self-sufficiency, regulations related to renewable energy must be prioritised and completed as soon as possible,” he added. (Hartatik)
