Indonesia needs to take steps to lower fuel consumption: Prabowo

Indonesia’s new government, led by President Prabowo Subianto, has prioritized reducing fuel consumption and enhancing energy self-sufficiency amid rising geopolitical tensions and domestic energy demands. Key measures include accelerating biofuel adoption, reactivating idle oil and gas wells, and streamlining regulatory processes to boost domestic production. The administration aims to increase palm oil-based biodiesel blending in diesel to 50% from 35%, while also exploring cassava and corn as biofuel feedstocks. Additionally, the government plans to optimize nearly 5,000 idle oil wells and adopt enhanced oil recovery (EOR) technologies to raise output by 200,000 barrels per day.

However, analysts highlight structural challenges. Indonesia’s energy sector remains heavily reliant on fossil fuels, with 90% of consumption derived from imported oil and liquefied petroleum gas (LPG), costing approximately $24.75 billion annually. While Prabowo has emphasized renewable energy goals, including a 100% renewable target within a decade, recent policy documents project only a 19–23% renewable energy mix by 2030, with fossil fuels still projected through 2060.

Critics also point to inconsistent governance, including the dissolution of key coordinating ministries and fragmented institutional responsibilities, which have hindered progress on coal phase-downs and subsidy reforms. The government’s focus on biofuels, while aiming to reduce imports, faces scrutiny over environmental impacts, including deforestation risks and high production costs requiring sustained subsidies.

To achieve its fuel consumption reduction goals, Indonesia must balance short-term energy security with long-term sustainability, addressing regulatory inefficiencies, fiscal constraints, and inter-agency coordination gaps. The success of Prabowo’s energy agenda will depend on aligning ambitious rhetoric with actionable, coherent policies.