Indonesia targets 7 GW nuclear and bioenergy to reduce oil import deficit

Indonesia is accelerating its energy transition to address a daily oil import deficit of approximately 1 million barrels. To bolster economic security and industrial stability, the government is integrating 7 GW of nuclear power into the National General Energy Plan (RUEN) to serve as a stable baseload source. Additionally, the country is promoting bioenergy, including biodiesel B50 and future bioethanol E20 targets, to reduce fossil fuel dependency.

Experts and officials highlight that Indonesia possesses a massive renewable energy potential of nearly 3,700 GW, though currently, less than 1% is utilized. The government is also pursuing a 100 GW solar power program to scale up capacity. The transition to a low-carbon economy is viewed as a strategic foundation for industrial strength, with the potential to create 1.2 million jobs annually and support GDP growth of 6-7%.

However, challenges remain regarding the orchestration of downstreaming (hilirisasi) policies. The Institute for Development of Economics and Finance (INDEF) emphasized the need for the newly formed Coordinating Ministry for Downstreaming and Energy Transition to resolve regulatory overlaps, technological readiness, and supply chain mismatches to ensure investments yield maximum domestic value.