Month: May 2025

Indonesian President Prabowo Subianto has just inaugurated the initial production of two oil and gas projects, namely the Forel-Bronang Field and the Terubuk Field, offshore in the Natuna Sea, Riau Islands, today, Friday (16/5/2025).

“By saying Bismillahirrahmanirrahim, this afternoon, Friday, May 16, 2025, I, Prabowo Subianto, President of the Republic of Indonesia, inaugurate the initial production of the Forel and Terubuk Oil Fields. Thank you. Good luck,” said Prabowo online, Friday (16/5/2025).

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia said that the two oil and gas fields are operated by Medco E&P Natuna Ltd, a subsidiary of PT Medco Energi Internasional Tbk (MEDC). The total investment for the two oil fields is estimated to reach US$ 600 million or around IDR 9.85 trillion (assuming an exchange rate of IDR 16,424 per US$) and and is able to create jobs for approximately 2,300 people during the construction period.

He said that these two projects have a large Domestic Component Level (TKDN), both in terms of labor and oil collection vessels. The Forel Project and the Terubuk Project are part of the development of oil and gas potential in the South Natuna Working Area, Block B, Natuna Sea, Riau Islands Province. On this occasion, he also said that national oil lifting production is expected to increase to 900,000-1 million barrels per day (bpd) in 2029-2030.

“In order to translate the direction of the President’s policy that has been planned in 2029-2030 we must create our production of around 900 thousand barrels or up to 1 million barrels (per day), so we report that in general, in 2024, our lifting will reach 580 thousand barrels. In the 2025 State Budget, thanks to the hard work of the Ministry of Energy and Mineral Resources team, SKK Migas, and all KKKS who are working hard in the field, we report, ask for support, God willing, the State Budget target and the President’s target we will be able to realize by the end of 2025,” he explained.

The Forel-Bronang project itself is located in the Natuna Sea Offshore, Riau Islands with an oil production capacity of 9,900 barrels per day (bpd) and gas production of 42 million standard cubic feet per day (MMSCFD). Meanwhile, the first oil and gas production of the Forel-Bronang Natuna project was carried out on May 12, 2025, through Well A-01 at WHP Forel to FPSO (Floating Production, Storage, and Offloading) Marlin Natuna. The production flow rate of well A-01 reached 5,000 bpd or equivalent to 0.86% of national production. The development of this project requires an investment of around US$ 250 million equivalent to IDR 4.1 trillion (assuming an exchange rate of IDR16,410 per US$) with details of drilling and completion investment of US$ 133 million equivalent to IDR 2.18 trillion and production facility investment of US$ 117 million equivalent to IDR 1.92 trillion.

Terubuk Siput FieldTerubuk Siput Field, South Natuna Sea Block B Working Area is located in the Offshore Natuna Sea, Riau Islands. The project made its first production at the end of April 2025. The initial production of the Terubuk Siput Field itself was in the form of gas reaching 12.6 MMSCFD or equivalent to 0.18% of national production and oil of 4,240 bpd or 0.73% of national production. Meanwhile, the development of the project requires an investment of around US$ 540 million or equivalent to IDR 8.85 trillion with a breakdown of drilling investment of US$ 254 million or equivalent to IDR 4.16 trillion and production facility investment of US$ 286 million or equivalent to IDR 4.69 trillion.

May 16, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20250516174259-4-633906/baru-diresmikan-prabowo-proyek-minyak-di-natuna-telan-rp-98-triliun)

Lion Group’s aircraft workshop, Batam Aero Technic (BAT) has the potential to be the largest in the world. The workshop can repair dozens of aircraft at once. According to Lion Group Founder Rusdi Kirana, his company’s Maintenance, Repair, and Overhaul (MRO) facility can now accommodate 23 aircraft. Not only does it carry out repairs or maintenance on aircraft owned by Lion Group, but this facility can also accommodate other airlines.

“Later at the end of the year there will be around 27 percent, so it will be the largest aircraft workshop in the world. This is one of the reasons we can survive the onslaught of the dollar, the tariff war. We survive because we have our own workshop, we will continue with other airlines, so technical excellence.” he said happily.

As an MRO center in the Southeast Asia region, BAT is expected to be able to attract domestic and international airlines to carry out aircraft maintenance in Indonesia, so that it will increase the flow of business from abroad and make Indonesia a regional MRO hub. With the number of facilities continuing to grow, BAT certainly needs more human resources (HR). Currently, Lion Group is carrying out certification for the Kirana Polytechnic.

It is expected that the Polytechnic can operate in July and will recruit hundreds of prospective students. As a college, Kirana Polytechnic has four study programs, namely: 1. Aviation Industry Logistics; 2. Avionics Engineering Technology; 3. Aircraft Maintenance Engineering Technology; 4. Advanced Aviation Technology and Ecosystem.

“We hope that Kirana Polytechnic can operate and will focus on educating good engineers. That’s all scholarships.”

May 10, 2025, detikTravel

(https://travel.detik.com/travel-news/d-7908269/bengkel-pesawat-lion-group-bakal-jadi-yang-terbesar-sedunia)

Coordinating Minister for Economic Affairs Airlangga Hartarto has just held a meeting with Fumio Kishida as the special envoy of the Prime Minister of Japan. The meeting was a follow-up to the previous meeting between President Prabowo Subianto and Kishida.

Airlangga said that in this meeting, both parties also witnessed the signing of the Financial Close between PT Supreme Energy Muara Laboh (PT SEML) and the Japan Bank for International Cooperation (JBIC) for the Muara Laboh Geothermal Power Plant (PLTP) project unit 2 in Solok, West Sumatra. The 88 Mega Watt capacity project has an investment of up to US$ 500 million or around IDR 8.2 trillion.

“Today the showcase that is already running is the Muara Laboh PLTP in Solok, West Sumatra with this financial close of 88 MW of the project with a project value approaching 500 million USD,” said Airlangga at the Coordinating Ministry for Economic Affairs Office, Jakarta, Monday (5/5/2025).

According to Airlangga, the funding of the Muara Laboh PLTP unit 2 projects by JBIC is a commitment of cooperation between the Indonesian and Japanese governments regarding the energy transition through the Asia Zero Emission Community (AZEC) initiative.

“In 2013, when he served as the Japanese Foreign Minister’s Partner, Mr. Kishida signed a joint crediting mechanism with the Coordinating Minister for the Economy at that time and then PM Kishida initiated the establishment of the ASEAN Zero Emission Economy Community, whose showcase that is currently running is the Muara Laboh PLTP in Solok,” he said.

In addition to the Muara Laboh PLTP, Airlangga revealed that a number of other projects have also been included in the first category of Indonesia-Japan cooperation under AZEC. The entire project includes the Legok Nangka waste-to-energy project, the Development of Sustainable Aviation Fuel (SAF), and the Sarulla PLTP along with the electricity transmission project from Java to Sumatra.

“Several other projects that have been included in category 1, namely Legok Nangka waste to energy, then Sustainable Aviation Fuel and Sarulla Geothermal Power Plant are also included in those that will be financed, namely the transmission line from Java to Sumatra and this is expected to enter the commercial stage and the visit of the former Prime Minister confirms the strong commitment of Indonesia and Japan to work together in a sustainable and low-carbon future,” said Airlangga.

May 5, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20250505143853-4-631032/deal-jepang-pastikan-biayai-pembangkit-panas-bumi-rp82-t-di-sumbar)

President Prabowo Subianto brought a series of ‘souvenirs’ after conducting working visits to various countries a week ago. Prabowo visited the United Arab Emirates, Turkey, Egypt, Qatar, and Jordan. Several economic agreements were souvenirs that Prabowo brought from his series of visits.

1. Agreement in the Defense Industry

Prabowo said that Indonesia wants to participate in the development of advanced combat vehicles with Turkey. Prabowo conveyed this desire during a bilateral meeting with Turkish President Recep Tayyip Erdogan. Initially, Prabowo explained that Indonesia and Turkey already had a joint venture agreement to form a defense company.

“We also have an agreement to create an important joint venture between strategic defense companies between our two countries. We are very grateful,” Prabowo explained in a joint press statement after a bilateral meeting with Erdogan, broadcast virtually, Thursday (10/4/2025).

Through this cooperation, Prabowo stated that Indonesia wants to participate in developing advanced KAAN fighter jets and submarines with Türkiye.

“Indonesia wants to participate in the cooperation in developing the fifth generation KAAN fighter jet and also in the development of submarines with the Turkish industry,” said Prabowo.

Still on Turkey, Prabowo also invited Turkish entrepreneurs to build the battery industry, renewable energy, and textile industry. Indonesia will also open the red carpet to carry out infrastructure development in Indonesia.

2. Investment of IDR 33 Trillion with Danantara

During his safari in the Middle East, Prabowo also received a large investment commitment from Qatar. He said, the Emir of Qatar Sheikh Tamim Bin Hamad Al-Thani wanted to invest in a project with the Investment Management Agency (BPI) Daya Anagata Nusantara (Danantara).

The number one person in Indonesia stated that the Emir of Qatar would invest US$ 2 billion or IDR 33.4 trillion (exchange rate of IDR 16,700) with Danantara. The investment was made by combining one joint fund between the two parties.

“I think the meeting was very good, productive, we agreed to increase cooperation. He (the Emir of Qatar) will invest with Danantara. One joint fund, he committed US$ 2 billion, yes,” Prabowo explained when giving a press statement after the meeting, quoted Monday (14/4/2025).

Unfortunately, Prabowo did not specify what projects would be invested in with Danantara. He only emphasized that this would be followed up immediately. In Qatar, Prabowo also strengthened bilateral cooperation through the establishment of a Strategic Dialogue (SD) mechanism which is held annually at the level of the Minister of Foreign Affairs. This Strategic Dialogue aims to encourage more intensive cooperation in various strategic fields. Among them are politics, international and regional issues, defense and security, economy and energy, agriculture and food security, tourism, science and technology, health, sports, youth, protection of Indonesian Migrant Workers (PMI), and collaboration in various multilateral forums.

3. Cheap Fertilizer Raw Materials

During a visit to Jordan, Prabowo said that Indonesia would become a regular buyer of fertilizer raw materials from that country. According to him, everything from phosphate to potash can be obtained at a low price in Jordan. This was stated by Prabowo after meeting with King Abdullah II in Amman, Jordan. According to Prabowo, in the discussion with King Abdullah II, there were many commitments to increase cooperation between the two parties.

“Yes, we discussed increasing cooperation in several fields, education, science, technology, economy,” said Prabowo in a press statement broadcast on the Presidential Secretariat YouTube account, Tuesday (4/15/2025).

Prabowo also praised Jordan for making great progress in agricultural technology. Indonesia also wants to learn a lot from there. He introduced the Minister of Agriculture Amran Sulaiman during a bilateral meeting. Amran sat with Prabowo and other delegates at a long table facing King Abdullah II and his delegates. This cooperation is expected to advance the agricultural sector in Indonesia.

April 16, 2025, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-7870502/kado-prabowo-usai-dari-turki-yordania)

Two Indonesian airports are among the world’s best airports according to Skytrax. Among them are Soekarno-Hatta International Airport (CGK) and I Gusti Ngurah Rai International Airport (DPS). The best airports according to Skytrax were selected based on a survey conducted on 13 million air transport users from more than 100 countries at 565 airports worldwide in the period August 2024 – February 2025. Passengers surveyed were asked to rate the airport based on their experience at airport service points, starting from check-in, arrival, transfer, shopping, security checks, immigration, to departure.

President Director of PT Aviasi Pariwisata Indonesia (Persero) or InJourney Maya Watono said that Soekarno-Hatta Airport has successfully risen to 25th place from 28th place in the World’s Top 100 Airports 2025 category. Not only that, but Indonesia’s pride airport also achieved 3rd place in the Best Airports 2025 by Size (50 to 60 Million Passengers) category and is in 9th place for Best Airports in Asia 2025.

In terms of service, Soekarno-Hatta International Airport is among the best by achieving 10th place for Best Airport Staff in Asia 2025 and 10th place in World’s Best Airport Immigration Services 2025.

“In recognition of the improvement in the quality of its services, Soekarno-Hatta International Airport has also achieved Certified 4 Star Airport Rating 2025 status, after maintaining its 3 Star Airport predicate since 2013,” he said in a written statement, Friday (11/4/2025).

Maya added that I Gusti Ngurah Rai International Airport also recorded positive achievements in the 2025 world airport awards. In the World’s Top 100 Airports 2025 category, this airport managed to rise two ranks, from 74th to 72nd. Then, I Gusti Ngurah Rai Airport won recognition as one of the best regional airports in Asia by ranking 6th in the Best Regional Airports in Asia 2025 category.

“Airport transformation is a very important process for the development of Indonesia’s aviation and tourism industry. Airports as the face of the nation must have good quality of service so that they give a beautiful impression when people first visit Indonesia,” he said.

Furthermore, Maya said that the transformation process at 36 under the management of InJourney Airports will also continue to be carried out with the aim of improving services to passengers. The transformation is carried out fundamentally, covering aspects of premises, processes, and people, and is supported by the implementation of technology as an enabler.

April 11, 2025, detikFinance

(https://finance.detik.com/infrastruktur/d-7863957/2-bandara-ri-masuk-daftar-100-terbaik-dunia-soetta-di-peringkat-25)

President Prabowo Subianto together with the President of the United Arab Emirates (UAE) Mohamed bin Zayed Al Nahyan (MBZ) witnessed eight cooperation agreements between the two countries that were agreed in the form of Memorandums of Understanding (MoU) and Letters of Intent (LoI). The results of the cooperation include investments in milk production to the development of Solar Power Plants (PLTS). The announcement was made at the end of the bilateral meeting of the two heads of state held at the Qasr Al Shatie Palace, Abu Dhabi, on Wednesday (9/4/2025).

The eight documents consist of four cooperation agreements between governments (Government to Government/G-to-G) and four cooperation agreements between business actors (Business to Business/B-to-B). This cooperation reflects the increasingly close strategic relationship between Indonesia and the UAE in various fields.

The four G-to-G MoUs that were announced include:

1. Statement of Intent between the UAE Ministry of Foreign Affairs and the Coordinating Ministry for Food of the Republic of Indonesia on the Nature and Climate Partnership;
2. Second Amendment Protocol to the Memorandum of Understanding between the Government of the Republic of Indonesia and the Government of the UAE on Maritime and Fisheries Cooperation;
3. Memorandum of Understanding between the UAE Ministry of Home Affairs and the Indonesian National Police on Security and Counterterrorism Cooperation; and
4. Memorandum of Understanding between the Indonesian Ministry of Religious Affairs and the General Authority for Islam, Waqf, and Zakat of the UAE on Cooperation in the Field of Islam and Waqf.

Meanwhile, the four B-to-B agreements submitted were:

1. Memorandum of Understanding between the Directorate General of Animal Husbandry and Animal Health, Ministry of Agriculture of the Republic of Indonesia, and Al-Ain Farms for Livestock Production of the UAE on Investment in Milk Production;
2. Memorandum of Understanding between Ninety Degree General Trading LLC and PT Pindad;
3. Agreement in Principle Regarding the Addition of the Capacity of the Cirata Photovoltaic Solar Power Plant; and
4. Memorandum of Understanding between PT PLN (Persero) and Abu Dhabi Future Energy Company PJSC – MASDAR regarding the Jatigede 100 MW Floating PLTS Development Plan.

Prabowo also revealed the closed discussion held with MBZ in the meeting. The two leaders discussed various global strategic issues including the creation of peace in Gaza, Palestine.

“Of course I consulted with various geopolitical developments. We want to get input, thoughts, views from leaders in this region. Of course, we all think about how we can help resolve the conflict in this region, in Gaza, and its surroundings,” said Prabowo.

Prabowo emphasized that Indonesia continues to be committed to creating peaceful solutions through a diplomatic approach. Therefore, intensive communication and consultation with world leaders is very important.

April 9, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20250409194547-4-624709/ini-8-poin-kerja-sama-hasil-pertemuan-prabowo-mbz-di-abu-dhabi)

The debate between energy security and energy self-sufficiency becomes increasingly relevant in the context of Indonesia targeting the Golden Indonesia 2045. Conceptually, energy self-sufficiency refers to a country’s ability to fully meet its energy needs without relying on imports. Meanwhile, energy security focuses more on ensuring the availability of stable, affordable, and sustainable energy, including through imports if necessary. From a policy perspective, an approach that focuses only on energy self-sufficiency can face major obstacles, both in terms of infrastructure, investment, and global market volatility. Therefore, this paper argues that energy security should be a top priority in Indonesia’s national energy strategy.

Energy Self-Sufficiency: Ambition or Reality?

Indonesia is often referred to as a country rich in energy resources. However, empirical data shows major challenges in achieving energy self-sufficiency:

Oil and Gas: Data from the Ministry of Energy and Mineral Resources (ESDM) shows that Indonesia’s oil production has fallen from 1.6 million barrels per day (bpd) in 1995 to only around 575 thousand bpd in 2024, while consumption has reached 1.6 million bpd. This has resulted in import dependence of more than 60%.

Natural Gas: Indonesia’s gas reserves reach 100 trillion cubic feet (TCF). However, exploration of deep sea areas is still constrained by high costs and technology.

Coal: Indonesia is the largest coal exporter, but domestic consumption is increasing, and downstream policies still face implementation obstacles.

Renewable Energy: Although the potential for renewable energy is very large (more than 400 GW from solar, wind, and hydro), the realization of installed capacity is still below 12%. From this data, it is clear that energy self-sufficiency without a strong resilience strategy will face major obstacles, both in terms of supply, technology, and investment.

Energy Resilience: A Realistic and Sustainable Choice

The energy resilience approach allows Indonesia to continue to rely on domestic energy sources but with greater flexibility through energy diversification and international cooperation. Indonesia can take several steps to strengthen energy resilience with the following strategies:

Energy Diversification. Relying on oil and gas is not sustainable in the long term. Therefore, energy policy must prioritize a broader energy mix, including increasing the contribution of renewable energy and exploring new, more efficient reserves.

Transition to Clean Energy. Energy self-sufficiency based on fossil fuels is an expensive and inefficient strategy. Energy security allows for a faster transition to clean energy, with investment in energy storage technology and smart grid infrastructure.

Increasing Efficiency and Accessibility. Energy efficiency is key to reducing import needs. Data from the International Energy Agency (IEA) shows that countries with high energy efficiency can save more than 20% of national energy consumption. Indonesia needs to adopt stricter efficiency policies in the industrial and transportation sectors.

Sustainable Energy Infrastructure Development. The availability of energy resources does not automatically mean energy security. Investment in infrastructure, such as modern electricity grids, smart grids, and energy storage technology, must be a top priority.

Strategic Reserves and Global Cooperation. Strategic Petroleum Reserves (SPR) need to be increased to ensure supply stability. Currently, Indonesia only has reserves of around 20 days of consumption, far below the standards of developed countries such as the US (60 days) and Japan (90 days).

Conclusion and Policy Recommendations

Although energy self-sufficiency is an ideal goal, energy security is a more realistic and sustainable step. To achieve strong energy security, Indonesia must:

1. Increase the renewable energy mix to 35% by 2045 to reduce dependence on fossil fuels; 2. Build a strategic energy reserve (SPR) of at least 60 days of consumption to anticipate global energy market volatility; 3. Optimize energy efficiency in the industrial and transportation sectors to reduce dependence on imported energy; 4. Strengthen international energy cooperation to maintain stable energy supply and prices; 5. Accelerate investment in energy infrastructure such as smart grids and energy storage technology.

With this strategy, Indonesia can ensure that its energy supply remains safe, stable, and affordable, without having to force energy self-sufficiency which is difficult to achieve in the short term. The mindset transformation from energy security to more measurable energy self-sufficiency must be a top priority in national energy policy.

April 8, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/opini/20250408055430-14-624068/ketahanan-energi-swasembada-energi-dan-target-indonesia-emas-2045)

Indonesia is one of the countries affected by the latest US trade tariffs. The imposition of import tariffs from a number of countries, including 32% for Indonesian goods entering the United States (US), was announced by US President Donald Trump on Wednesday (2/4/2025) local time. INDEF economist Eisha Maghfiruha Rachbini explained that the implementation of tariffs on Indonesian export products to the US would have a direct impact. The tariffs will have a significant impact on Indonesia’s exports to the US, such as textiles, footwear, electronics, furniture, and agricultural and plantation products, such as palm oil, rubber, and fisheries.

“In theory, with the implementation of tariffs, there will be trade diversion from low-cost markets to high-cost markets. So that it will have an impact on high costs for exporters for superior commodities and slow production and employment,” said Eisha in her official statement, quoted Thursday (3/4/2025).

She also believes that the government needs to conduct trade negotiations with the US immediately in order to minimize the impact of tariffs on Indonesian export products to the US. Diplomatic negotiation power is very crucial in mitigating the impact of the trade war with the US.

“The government needs to optimize bilateral and multilateral trade agreements, CEPA, and initiate cooperation agreements with non-traditional countries to encourage exports of affected products, such as textiles, footwear, electronics, furniture, and agricultural and plantation products, such as palm oil, rubber, fisheries. So that exporters and affected industries can shift export markets,” he said.

Not only that, financial incentive policies, subsidies, and tax breaks also need to be implemented by the government to help businesses overcome increased costs and reduced demand due to the impact of tariffs and the US trade war.

In response to trade tariffs, the government of President Prabowo Subianto claims to have prepared a strategy to counter the impact of US President Donald Trump’s policy regarding import tariffs. According to the Deputy for Dissemination and Information Media of the Presidential Communications Office (PCO) Noudhy Valdryno, there are three “major breakthroughs” that have been made long ago to deal with the turmoil.

He said that these three policies synergize to keep Indonesia growing and developing even in a situation of global economic disruption. The three policies include:

1. Expansion of Trading Partners

Noudhy explained that Indonesia’s joining the BRICS economic alliance strengthens Indonesia’s position in international trade. According to him, Indonesia’s membership in BRICS strengthens various multilateral trade agreements. Indonesia has signed agreements such as the Regional Comprehensive Economic Partnership (RCEP) with 10 ASEAN countries and Australia, China, Japan, South Korea, and New Zealand, which covers 27% of global trade, as well as accession to the Organization for Economic Cooperation and Development (OECD) which covers 64% of global trade. Including several other trade agreements CP-TPP, IEU-CEPA, and I-EAEU CEPA.

2. Acceleration of Downstream Natural Resources

According to Noudhy, the Prabowo government prioritizes downstream policies. One successful example is the nickel commodity. In addition, Prabowo has also launched the Danantara Investment Management Agency which is claimed to accelerate the downstreaming of strategic Natural Resources.

“BPI Danantara will fund and manage downstream projects in key sectors such as minerals, coal, oil, natural gas, plantations, maritime, fisheries, and forestry,” he said.

3. Strengthening Domestic Consumption

According to Noudhy, the Free Nutritious Meal Program and the establishment of 80,000 red and white village cooperatives aim to increase domestic consumption and reduce dependence on imports, as well as strengthen the domestic economy. It is hoped that the program can boost household consumption which contributes 54% of Indonesia’s GDP.

“By strengthening international trade relations, optimizing the potential of natural resources, and increasing domestic consumption, President Prabowo has proven that Indonesia can continue to grow even in the midst of a global situation full of uncertainty,” said Noudhy.

April 3, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20250403175307-4-623475/trump-kenakan-tarif-32-ekonom-indef-wanti-wanti-dampaknya-ke-ri) (https://www.cnbcindonesia.com/news/20250403213130-4-623513/ini-tiga-senjata-presiden-prabowo-hadapi-tarif-trump)