Indonesia is moving on several fronts in energy and natural resources, from planning nuclear power and expanding domestic fuel production to securing new minerals partnerships and upstream oil and gas stakes.

Nuclear power and rising electricity demand

The government has raised its initial nuclear power target to 1,500 megawatts. It is weighing nuclear technology proposals from Russia, Germany, Japan, South Korea and Canada as part of a wider effort to diversify the energy mix and keep up with growing electricity needs.

Expanding LPG supply

Bahlil has inaugurated the privately owned Cilamaya LPG plant in West Java. With an annual output of 52,800 tons, the facility is expected to cover an estimated 10% to 15% of demand in West Java and Jakarta. Two more LPG plants are planned for 2027 in Jambi Merang and Tomori, which would further strengthen domestic production.

Petrochemicals investment

Danantara and the Indonesia Investment Authority (INA) have committed US$200 million to Chandra Asri's US$800 million chemical plant in Cilegon. That stake accounts for 25% of the CA-EDC project, which is scheduled to begin commercial operations in 2027.

Minerals and cooperation abroad

Jakarta is looking to broaden its resource ties with Central African countries beyond oil. Talks with Gabon centre on strategic rare earth minerals, while Indonesia is also exploring phosphate opportunities in the Republic of the Congo.

Adding value to palm oil

The industry ministry is encouraging businesses to process palm oil further rather than focusing mainly on crude palm oil. The aim is to raise export earnings and make better use of the country's abundant raw materials.

Oil supply and energy security

As tensions involving the Houthis and Saudi Arabia escalate and threaten global fuel logistics and shipping routes, Indonesia is sourcing oil from multiple suppliers to protect its domestic energy supply.

Upstream oil and gas governance

The Supreme Audit Agency has found that institutional weaknesses at the Special Task Force for Upstream Oil and Gas Business Activities, along with unresolved project barriers, are undermining efforts to strengthen national energy security. The auditor noted progress on resource indicators, however.

Mining guarantees under scrutiny

The same audit flagged US$16.25 million in mining guarantees that were not being properly managed. Reclamation and post-mining guarantees had not been transferred to the central government, and exploration guarantees worth US$4.71 million remained outside the Energy Ministry's control.

New stakes in East Kalimantan's Kutai Basin

MedcoEnergi plans to acquire 10% stakes in four production-sharing contracts in the Kutai Basin from Eni. The deal is intended to strengthen MedcoEnergi's upstream portfolio, expand its presence in the LNG supply chain and support long-term production growth. Separately, Pertamina and MedcoEnergi have acquired interests in Eni's East Kalimantan gas assets, which deepens Indonesian participation in the basin and gives them access to established LNG infrastructure.