Jakarta – Energy economist from Universitas Gadjah Mada (UGM), Dr Fahmy Radhi MBA, responded to President Prabowo Subianto’s commitment to bringing Indonesia to energy self-sufficiency within his administration. Fahmi welcomed the commitment, however, he underlined the significant challenges Indonesia faces in realising energy self-sufficiency, especially technological limitations.
In his inauguration speech as President of the Republic of Indonesia for the period 2024-2029, President Prabowo promised to bring Indonesia to energy self-sufficiency in the next 4 to 5 years, including developing new renewable energy (NRE) by utilising various abundant energy resources in the country, such as palm oil, cassava, sugar cane, geothermal, and solar energy.
“The main problem faced by Indonesia is the absence of adequate technology to process natural resources into renewable energy independently,” Fahmy said in a written statement on Monday, October 21.
Fahmy gave an example of several renewable energy projects that experienced obstacles due to a lack of technology and investor support. One is the development of palm oil-based biodiesel, which Pertamina previously initiated.
“Pertamina had run a biodiesel program by mixing diesel and palm oil, starting with B-20, then B-35, and B-40. However, this program stopped because the business partner from Italy decided to cooperate,” he explained. He cited the failure of the coal gasification program due to the withdrawal of the US partner, Air Product.
To achieve energy self-sufficiency, Fahmy suggested that the government immediately take strategic steps in two main areas. First, it should cooperate with foreign investors in advanced renewable energy processing technology. He says cooperation with international companies is very important, considering Indonesia’s technological lag in this sector.
In addition, Fahmy emphasised the importance of strengthening domestic research and development. “The second strategy is to strengthen research by involving the National Research and Innovation Agency (BRIN) and domestic universities,” he said. By developing its technology, Indonesia will not continue to depend on foreign parties in the future.
However, Fahmy also warns that this research development effort requires a long-term commitment in terms of budget and policy support. “Research and technology development takes time and a lot of money. The government must have a sustainable commitment to support this innovation,” he said. (Hartatik)
