Green Energy Transition: A Path to Sustainable Energy Self-Sufficiency
By: Rendra Adiputra *)
Indonesia’s energy future is being geared towards independence and sustainability. The government emphasizes that energy self-sufficiency is a crucial foundation for ensuring a stable electricity and energy supply for the public, while reducing dependence on imports. This step aligns with Indonesia’s commitment to reduce carbon emissions by 31.89 percent independently and 43 percent with international support by 2030. This ambitious target requires a comprehensive transformation of the energy sector based on locally sourced and environmentally friendly resources.
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the government has established the Energy Transition and Green Economy Task Force (Satgas TEH) to accelerate this agenda. The task force was established through Coordinating Ministerial Decree No. 141/2025 and focuses on strengthening institutions and inter-sectoral coordination. The government is also mobilizing large-scale financial support. Nine energy transition projects received funding in the form of loans or equity, while 45 other projects received grants totaling US$233 million. The Indonesia Infrastructure Guarantee Fund has also secured a US$1 billion guarantee through Multilateral Development Banks to accelerate the implementation of clean energy projects. This financing scheme demonstrates that the government is not merely formulating policies but also ensuring the availability of supporting instruments.
One of the main focuses of the green energy policy is geothermal utilization. PT Pertamina Geothermal Energy (PGE) President Director Julfi Hadi believes that geothermal energy aligns with President Prabowo Subianto’s vision, which emphasizes the importance of utilizing domestic or indigenous resources. According to Julfi, the main advantage of geothermal energy is its sustainability and its ability to act as a baseload, or the mainstay of electricity supply. Geothermal power plants (PLTP) can operate 24 hours a day, providing a stable and clean electricity supply. Indonesia’s potential, stretching from Aceh to Papua, also makes it the country with the second-largest geothermal capacity in the world. With accelerated development, Indonesia has the potential to become a global leader in geothermal energy.
Julfi also emphasized that geothermal utilization is not only relevant for electricity generation but also opens up opportunities for downstream energy processing. Modern technology allows this energy to be integrated with other sectors such as the production of green hydrogen, green ammonia, and even data center operations. This step not only supports the energy transition but also creates new industrial opportunities and jobs, strengthening national competitiveness. With only around 10 percent of its capacity currently utilized, there is still significant room for geothermal development. If optimally managed, this energy source can become a new driver of economic growth while strengthening national energy security.
In addition to geothermal energy, the government is also strengthening the use of natural gas as part of the energy transition. PT Perusahaan Gas Negara Tbk (PGN), Pertamina’s gas subholding, reaffirmed its commitment to supporting the government’s program to achieve energy self-sufficiency through natural gas. PGN’s Director of Infrastructure and Technology, Hery Murahmanta, stated that natural gas plays a strategic role as the backbone of the national energy transition toward the 2060 Net Zero Emission target. The use of natural gas, particularly the household gas network (jargas), is considered crucial for controlling air pollution and reducing energy imports. By utilizing natural gas, Indonesia has the opportunity to significantly reduce imports of liquefied petroleum gas (LPG), in line with the President’s directives through the Asta Cita program.
Hery explained that PGN operates an integrated infrastructure spanning over 33,000 kilometers of pipelines, LNG regasification facilities, and gas filling stations. In the Cilegon area, PGN distributes approximately 40.87 billion British thermal units per day (BBTUD) of natural gas to over 16,000 household customers, small customers, as well as commercial and industrial customers. Overall in Banten Province, PGN has built over 15,000 gas networks through the State Budget and over 69,000 independent PGN gas networks. This infrastructure is spread across various cities and regencies such as Cilegon, Serang, Tangerang, and South Tangerang. Plans to expand gas networks continue with government support through accelerated licensing, economic development incentives, and community outreach. This effort also received support from the Deputy Chairperson of Commission XII of the Indonesian House of Representatives, Putri Zulkifli Hasan, and the Regent of Serang, Ratu Rachmatuzakiyah, who considered gas networks crucial for meeting the community’s clean energy needs.
