Govt accelerates renewable energy development amid global turmoil

Jakarta (ANTARA) - Indonesia's Energy and Mineral Resources (ESDM) Ministry is accelerating the development of new and renewable energy to secure national energy self-sufficiency amid ongoing geopolitical volatility disrupting global supply chains.

Deputy Minister of ESDM Yuliot stated that transitioning toward renewable energy is a key priority under the government's Astacita program to safeguard national economic stability.

"This is our part in encouraging the increase in new and renewable energy,” Yuliot remarked at the 12th IndoEBTKE ConEx 2026 conference in Jakarta on Wednesday.

Yuliot warned that without adequate domestic energy supplies, essential economic sectors such as transportation and manufacturing could face severe disruptions.

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He added that clean energy expansion will also spur job creation and investment.

The push comes as global energy markets face severe volatility. Brent crude oil futures surged to US$96.65 per barrel on Wednesday following a fresh wave of military strikes involving the United States and Iran, rebounding sharply from late August lows of US$86.20 per barrel.

West Texas Intermediate (WTI) similarly spiked nearly 2 percent to US$92.20 per barrel.

Yuliot cautioned that if geopolitical shocks are not countered with renewable alternatives, national energy subsidies and compensation could swell by an additional Rp300 trillion (approximately US$18.75 billion) beyond current state allocations.

The government has already earmarked Rp 210.1 trillion (US$13.13 billion) for energy subsidies in the 2026 State Budget - representing nearly 66 percent of total state subsidy spending - with total energy security commitments, including compensation schemes, reaching Rp 381.3 trillion (US$23.83 billion).

To mitigate reliance on volatile imported fossil fuels, Indonesia is advancing several key green initiatives, including the rollout of its B50 biodiesel mandate, accelerating conventional vehicle conversions to electric vehicles (EVs) as well as scaling utility-scale power projects utilizing solar, geothermal and hydroelectric power.

This news was published on Antaranews.com with a title: Govt accelerates renewable energy development amid global turmoil

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