Prabowo-Gibran’s One Year Strengthens Energy Independence and Food Downstreaming to Expand Job Opportunities
By: Veronia Candra )*
The first year of the administration of President Prabowo Subianto and Vice President Gibran Rakabuming Raka marks a significant milestone in the journey of strategic sectors: energy self-sufficiency, food downstreaming, and job creation. All three are key pillars of the national economy. Amidst global dynamics and domestic challenges, the government has successfully achieved concrete achievements in these three key pillars of the national goal of economic independence.
In the energy sector, tangible achievements are evident in the increase in oil production and the acceleration of the clean energy transition. The Minister of Energy and Mineral Resources, Bahlil Lahadalia, explained that national oil lifting will increase from 580,000 barrels to 605,000 barrels per day through 2025. This increase demonstrates operational efficiency and the government’s success in maintaining a stable national energy supply. Furthermore, the mix of new and renewable energy has also increased significantly from 11 percent to 15.5 percent of total national electricity.
This step demonstrates the government’s commitment to building sustainable energy independence. Bahlil believes that achieving energy self-sufficiency cannot be compared to other sectors because it requires capital, technology, and a long time to see results. The exploration and production process in the energy sector requires perseverance, and the successes of the past year are a testament to measurable hard work.
Energy independence is not merely about increasing production, but also about sovereignty. In a global economic context vulnerable to oil price fluctuations, Indonesia’s ability to strengthen its national energy sector is a crucial pillar for fiscal stability and industrial competitiveness. The government recognizes that without strong and independent energy, industrial downstreaming will not run optimally.
In the food sector, Minister of Agriculture Andi Amran Sulaiman has outlined a new direction for national agricultural development through the downstreaming policy. The government aims to transform Indonesia from being an exporter of raw materials to a producer of high-value-added products. The proposed downstreaming program encompasses the plantation, horticulture, and livestock sectors, with a primary focus on strategic commodities such as coconut, gambier, and palm oil.
Amran explained that the economic potential of coconut downstreaming is enormous. Indonesia exports around 2.8 million tons of coconuts annually, valued at IDR 24 trillion. However, if processed into derivative products such as coconut milk or Virgin Coconut Oil (VCO), that value could increase up to a hundredfold. This means potential foreign exchange earnings could reach IDR 2,400 trillion, with even half of that amount reaching IDR 1,200 trillion.
Similar measures are being implemented for gambier, which currently supplies nearly 80 percent of global demand. Through downstream processing, gambier derivative products will be used in the ink, pharmaceutical, and cosmetics industries. This program not only increases export value but also strengthens the domestic industrial structure, eliminating dependence on imported finished goods.
Amran also highlighted the link between food downstreaming and energy security. As the world’s largest producer of crude palm oil (CPO), Indonesia is now diverting some of its production to biodiesel (B50). This step directly strengthens energy security and saves the country’s foreign exchange. He stated that if 5.3 million tons of CPO were diverted to the biodiesel program, diesel imports could be halted, and Indonesia would have a stronger bargaining position in the global market.
In addition to boosting added value, the downstreaming program is also a new source of job creation. The government has allocated IDR 9.95 trillion from the supplementary budget for plantation and horticultural development, including free seed and seedling assistance for farmers throughout Indonesia. Covering 800,000 hectares, this program is projected to absorb 1.6 million new workers in the next two years.
Achievements in the energy and food sectors ultimately lead to the most important thing: the welfare of the people. The government is not only focused on growth figures but also ensures that the benefits of development are felt at the grassroots level. When farmers gain added value from their crops, when local workers are absorbed in the downstreaming industry, and when energy costs become more efficient, that is where the true meaning of development lies.
The energy self-sufficiency and food downstreaming policies implemented by the Prabowo-Gibran administration are part of a broader strategy to build a self-reliant economy. In the long term, this policy direction will strengthen national economic resilience and pave the way for industrialization based on domestic resources.
The first year of this administration can be described as a period of laying the foundations of the Indonesian economy.
