Observer: President Prabowo Needs To Encourage Investment In The Renewable Energy Sector

The President of the Republic of Indonesia, Prabowo Subianto. (Photo: Doc. Antara)

JAKARTA - Economic observer from the University of Jember Adhitya Wardhono PhD stated that President Prabowo Subianto needs to encourage investment in the renewable energy sector to realize his hopes of self-sufficiency in energy in Indonesia.

Presiden Prabowo Subianto menyatakan komitmen Indonesia menuju self-sumbada pangan dan energi sebagai langkah utama guna menghadapi tantangan global yang semakin complex, yang disampaikan pada pidato pertamanya usai Pengukapan Oath sebagai Presiden Republik Indonesia, di Gedung Nusantara MPR/DPR/DPD, Jakarta, Minggu 20 Oktober.

"Indonesia's dependence on fossil energy, especially coal, requires a rapid transition to renewable energy," said Adhitya Wardhono in a written statement received in Jember, East Java, quoted from Antara, Monday, October 21.

According to him, the Government needs to formulate policies to encourage investment in the renewable energy sector, including fiscal incentives and attractive regulations for investors in clean energy technology such as solar, wind, and bioenergy.

"In addition, strengthening infrastructure such as smart electricity networks and energy storage facilities is very important to maximize investment," said the economist.

He said the measures would help Indonesia reduce dependence on fossil energy, reduce greenhouse gas emissions, and become the pioneer of sustainable energy transitions according to global commitments to climate change.

"Indonesia's dependence on fossil energy, especially for the power generation sector, makes countries vulnerable to global energy market fluctuations and environmental risks," he also said.

Therefore, accelerating the transition to renewable energy, such as solar power, wind, and bioenergy, is a strategic step to ensure long-term energy security.

However, the main challenges are limited infrastructure and investment in the renewable energy sector, so the transition requires great commitment, both from the public and private sectors, as well as policies that support technological innovation and ease of investment.

Adhitya explained that the development of renewable energy must also be in line with the need to create new jobs and maintain local economic stability which has been dependent on the coal industry.

"In addition, diversification of energy sources is the key to reducing Indonesia's dependence on one type of energy source," he said again.

He said that focusing on self-sufficiency in energy can create greater energy independence and reduce dependence on fossil energy imports, but its implementation requires a coordinated approach to clear policies and international support.