Prabowo Allots Rp402.4tn for Energy Resilience in 2026 State Budget Plan

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August 15, 2025 | 06:13 pm

Indonesian President Prabowo Subianto delivers a speech during the Annual Session of the People's Consultative Assembly (MPR) and the Joint Session of the House of Representatives (DPR) and Regional Representative Council (DPD) for the year 2025 at the Nusantara Building, Parliament Complex, in Jakarta, August 15, 2025. Tempo/Martin Yogi Pardamean

TEMPO.CO, Jakarta Prabowo Subianto has allotted Rp402.4 trillion for energy resilience in the 2026 State Budget Bill. According to the Indonesian president, the budget will cover the sustainability of oil and gas production, control energy prices to remain affordable, and accelerate clean energy transition.

"We will bolster our oil and gas production. We will maintain energy prices. And we will expedite the transition to clean energy," said Prabowo during the presentation on the State Budget Bill at the People's Consultative Assembly plenary meeting on Friday, August 15, 2025.

He also underscored the importance of reform to achieve fair and appropriate energy subsidy policies. The subsidies, he said, must target those in need instead of affluent communities. 

Prabowo also reaffirmed that new renewable energy is the future of Indonesia. The government will promote the acceleration of power plant development from various environmentally friendly sources, such as solar power, hydro, geothermal, and bioenergy.

"Indonesia must be a pioneer of clean energy in the world," he said, targeting an ambitious target of achieving 100% new renewable energy sources within 10 years, much faster than the global target in 2060.

To realize this vision, the government will provide support through various fiscal instruments, including energy subsidies, tax incentives for new renewable energy development, and electricity supply programs for rural areas.

"Our people, from cities to villages, must enjoy affordable and sustainable energy," Prabowo said.

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