Govt to Expedite Downstreaming, Strengthen Energy Security, Optimize Natural Resources for Self-Sufficiency

Minister of Energy and Mineral Resources Bahlil Lahadalia delivers a press statement at the private residence of President Prabowo in Hambalang village, Bogor regency, Wednesday (03/25).

The Government continues to expedite downstreaming measures, strengthen national energy security with alternative energy sources, and optimize natural resources management, Minister of Energy and Mineral Resources Bahlil Lahadalia has said.

Bahlil made the statement following a limited meeting with President Prabowo Subianto and several ministers at the President’s private residence in Hambalang village, Bogor regency, on Wednesday (03/25).

Bahlil pointed out that developing the downstreaming program is one of the Government’s priorities, adding that of the 20 downstreaming projects in the first phase, several have already entered the groundbreaking stage, while the remainder are scheduled to begin next month.

“There are 13 downstreaming items with a total investment amount of approximately 239 trillion [rupiahs], and we will discuss the finalization,” he said.

In addition to downstreaming, Bahlil also addressed the development of alternative energy as an effort to achieve energy security and self-sufficiency, adding that President Prabowo ordered the optimization of all domestic energy potential, including crude palm oil- or CPO-based ethanol and biodiesel, as well as the acceleration of the transition to new and renewable energy.

“The President ordered us to optimize all energy potentials we have, be it ethanol, biodiesel from CPO, and to promote energy transition to new and renewable energy,” he said.

On that occasion, Bahlil also reported the current energy and mineral commodity prices, especially coal and nickel, while underscoring that there has been no policy change regarding the management of the two commodities and that the Government has continued to monitor global market dynamics.

“Even if the prices remain stable and good, we will implement measured relaxation to the production plans. Everything is within the limits of coordination with the market, aligning with supply and demand. We expect the prices to remain stable. We hope that coal prices are good, nickel prices are good, and we will implement measured relaxation,” he said.

Bahlil further stated that during the meeting, President Prabowo underscored the importance of safeguarding natural resources as a strategic national asset and pushed for the optimization of state revenues from the mineral sector.

“The President ordered me to pay attention to the national interest and prioritize it above all, and [ordered] us to maintain our natural resources. Our natural resources are state assets, and for that reason, the President ordered us to look for sources of income in the mineral sector, which has not been fair to the state,” he said.

For the record, the Government aims to ensure that downstreaming is implemented optimally, energy transition continues to proceed, and energy commodity production remains balanced with market demands. The Government also strives to maintain competitive commodity prices without sacrificing the national interest.

With an integrated policy direction, especially regarding industrial downstreaming, strengthening domestic energy, and sovereign natural resource management, the Government seeks to create a more robust, independent, and globally competitive national economic structure. (BPMI of Presidential Secretariat) (DH/AW)