Source: Detik.com | October 28, 2025

Indonesia has a major plan to reduce its dependence on fossil fuels. The new energy diversification plan is outlined in Government Regulation No. 40 of 2025 concerning National Energy Policy.

This regulation outlines a national energy policy plan that will be implemented over the long term until 2060. The regulation was recently signed by President Prabowo Subianto on September 15, 2025.

As reported in the regulation on Tuesday (October 28, 2025), the government will implement diversification or shift energy use to improve energy resource conservation, energy independence, and national and regional energy security.

Article 31, paragraph 2, outlines six points that will be implemented from now until 2060. First, the transition from non-renewable energy supply and utilization to various new and renewable energy sources.

Second, the energy transition in the transportation sector from fuel oil (BBM) to electricity, bioenergy, hydrogen, gas, and other low-carbon energy sources.

Third, switching from the use of liquefied petroleum gas (LPG) for household and commercial purposes to the use of biogas, dimethyl ether (DME) gas, electric induction, or other low-carbon energy.

Fourth, a partial shift from coal-fired power plants to gas, hydrogen, ammonia, biomass, and other low-carbon energy sources will be implemented.

Fifth, the shift from fuel oil and gas to biomass and biogas, electricity, hydrogen, and other low-carbon energy sources for large industries, micro, small, and medium enterprises (MSMEs). The same will be done for the commercial and residential sectors.

Sixth, partial fuel oil and gas needs will be met by using liquefied and gasified coal produced using low-carbon technologies, taking into account economics.

Article 12 states that the reduction in petroleum energy will be implemented in several stages. From 2030 to 2040, the energy mix will be reduced to 22.4%-26.3%, then from 2040 to 2050 to only 14.3%-15.9%.

Then, from 2050 to 2060, it will be reduced again to only 8.7-8.8%. The main target is that by 2060, the oil energy mix will only reach 3.9-4.7%.

In the same article, coal use will also be gradually reduced. Between 2030 and 2040, the energy mix will be reduced to only 40.7-41.6%, and then again to 28.9-31.07% from 2040 to 2050. Then, from 2050 to 2060, coal use will be reduced again to 19.1-20.9%.

The main target from 2060 onward is for coal use to only 7.8-11.9% of the total national energy mix.