Minister Airlangga: Resource Processing and Renewables Crucial to Indonesia’s Energy Sovereignty
Jakarta. Indonesia has placed natural resource management, particularly in mining, at the center of its 2025–2029 Asta Cita development agenda, as the government targets 8 percent economic growth and ramps up investment to achieve energy independence and Net Zero Emissions.
The government's Asta Cita agenda is also aligned with the core objectives of the 2025–2045 National Long-Term Development Plan (RPJPN).
“President Prabowo Subianto has instructed us to accelerate the use of renewable energy. He has also directed that Indonesia must achieve 8 percent economic growth. To reach this level, a significant investment is required, targeted at Rp 13,000 trillion over the 2025–2029 period. This means that by next year, investment must already reach Rp 2,100 trillion, up from around Rp 1,900 trillion this year,” Chief Economic Affairs Minister Airlangga Hartarto said at the Indonesia Mining Forum 2025: Empowering Growth and Sustainability, Road to Coaltrans Asia 2025, held on Thursday.
Airlangga added that the country will continue to rely on its enormous coal reserves --even as it moves toward net-zero emissions-- and the commodity will remain an important export.
He also said Indonesia is not solely dependent on coal as an energy source. The government is actively promoting resource processing to generate higher-value products, such as the development of dimethyl ether (DME) as a substitute for LPG, to reduce import dependency and government subsidies. In addition, the development of methanol, essential for biodiesel production, is also being encouraged.
The government has outlined a roadmap for 28 selected commodities to be the focus of the resource processing program. The potential investment from this initiative could reach $ 618.1 billion, absorbing over 3 million workers by 2040. Export value is projected at $ 857.9 billion, and its contribution to GDP could reach $ 235.9 billion. Investment in downstream mineral and coal projects is estimated at $20 billion. With these investments, high-tech coal utilization -- such as combining coal with ammonia or hydrogen combustion -- can be further developed, aiming to make clean coal technology a key energy pillar for Indonesia.
“For the oil and gas industry, carbon capture and storage (CCS) can also be used for enhanced gas recovery. CCS helps increase gas production. The government continues to push for mineral downstream industrialization with an emphasis on environmental, social, and governance (ESG) principles. This poses a challenge for the industry to consistently implement good mining practices and green mining practices,” said Minister Airlangga.
Downstream resource processing is also important in reducing LPG dependency and supporting methanol production. Several related projects have already been granted Special Economic Zone (SEZ) status, with supporting regulations and various incentives.
Furthermore, Minister Airlangga said that the ongoing global trade war presents an opportunity for Indonesia to seek new sources of economic growth beyond conventional means. One such non-conventional source is silica-based processing, which can lead to solar panel manufacturing. Currently, solar panels are being exported from the Batam, Bintan, and Karimun Free Trade and Free Port Zones (FTZ BBK).
“That is our short-term roadmap to push forward the Asta Cita goals of energy independence and resource processing. This is highly relevant for the coal mining industry. We know that coal goes through boom-and-bust cycles, but during downturns like now, it’s the right time to focus on the downstream industry. The government and private sector must work together to promote Indonesia Incorporated in achieving energy self-sufficiency, pushing renewable energy, and achieving net-zero emissions. But we must also safeguard coal’s role as one of our traditional export mainstays,” concluded Minister Airlangga.
Also present at the event were Deputy Chair of Commission XII of the House of Representatives (DPR RI) Sugeng Suparwoto, Deputy for Energy and Mineral Resources Coordination at the Coordinating Ministry for Economic Affairs Elen Setiadi, Expert Staff for Regional Development at the Coordinating Ministry for Economic Affairs Haryo Limanseto, and Metro TV President Director Arief Suditomo.
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