Minister Reports Growth in Indonesia's Energy Sector Investment

1 month ago 14

August 11, 2025 | 03:40 pm

TEMPO.CO, JakartaThe Indonesian Minister of Energy and Mineral Resources, Bahlil Lahadalia, stated that the total investment in the energy sector throughout the first semester of 2025 reached US$13.9 billion or approximately Rp225 trillion. This figure has increased compared to the same period last year, which was only US$11.2 billion.

Bahlil stated that the realization of investment in the first semester of 2025 increased by approximately 24.1 percent compared to the same period the previous year. He also mentioned that this figure is the highest in the last five years. "The majority of the investment comes from the oil and gas and minerals, and mining sector, totaling almost Rp200 trillion," said Bahlil during a press conference at the Ministry of Energy office on Monday, August 11, 2025.

Bahlil detailed that the main support for the increase in investment comes from the oil and natural gas sector, which contributed around US$8.1 billion. Minerals and coal contributed US$3.1 billion. Meanwhile, the New, Renewable, and Energy Conservation (EBTKE) sector contributed US$0.8 billion, and the electricity sector contributed US$1.9 billion.

Bahlil claimed that the total investment has had an impact on job creation. "Approximately 753 thousand workers are absorbed from the total realization of the investment," he said.

In addition to investments, Bahlil stated that the energy sector also contributed to the increase in Non-Tax State Revenue (PNBP). In the first semester of 2025, the realization of PNBP from this sector reached Rp138.8 trillion or 54.5 percent of the annual target of Rp254.5 trillion.

Bahlil mentioned that the largest contribution comes from the mining and mineral sector, amounting to Rp74.2 trillion, followed by the oil and gas sector, which contributed Rp57.3 trillion. The EBT sector contributed Rp1.09 trillion, while other sectors reached Rp6.2 trillion.

According to Bahlil, the energy sector plays an important role in the state's revenue posture. "The total PNBP from energy accounts for 10 to 12 percent of the state's revenue target. This is only from PNBP, not including corporate income tax, which could be even larger. The energy sector is the key for the country in generating revenue as well as fulfilling the mandate of Article 33," he said.

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