Addin Anugrah Siwi, Jakarta – Despite Indonesia's commitment to a cleaner energy future, efforts to transition from fossil fuels to renewable energy remain slow and largely symbolic, an executive at state-owned energy giant Pertamina said on Monday.
Fadli Rahman, Pertamina's Director of Business Development and Renewable Energy Programs, said current energy policies have focused more on expanding renewable energy capacity rather than reducing fossil fuel consumption.
"We're not truly shifting from fossil to sustainable sources – we're merely adding renewable energy on top of existing fossil use," Fadli said at the Energy and Mineral Forum in Jakarta. "It's more of an energy addition than a genuine energy transition."
Fossil fuel dominance still untouched
While several renewable energy initiatives have been launched, fuel-based energy continues to dominate, Fadli said, undercutting Indonesia's net-zero emissions ambition.
He warned that as long as fossil fuel consumption remains business as usual, the transition lacks real impact.
One of the biggest obstacles is the cost gap between fossil fuels and renewable energy.
"Many businesses initially committed to renewables have backed out after realizing it could hurt their profit margins," Fadli said.
To address this, he called for a more realistic policy approach, including fiscal incentives to narrow the price disparity and encourage wider adoption of clean energy.
As part of its renewable energy efforts, Pertamina has rolled out Biodiesel 40 (B40) – a fuel blend containing 40 percent bio-based content – which has been commercially available since January.
Also speaking at the forum, Fendi Susiyanto, CEO of Finvesol Consulting Indonesia, predicted a continued decline in global crude oil prices, driven by production increases from OPEC countries and the United States.
"We expect crude oil prices to fall to the range of $50-60 per barrel," Fendi said.