March 30, 2026 | 06:04 pm
TEMPO.CO, Jakarta - Chair of the Manpower Department at the Indonesian Employers' Association (Apindo), Bob Azam, said the one-day remote work policy is a temporary balm against the looming energy crisis. The Indonesian government is urged to swiftly implement energy diversification measures.
Diversifying energy is deemed necessary amid the war in the Middle East that sends fuel prices swinging and causes crude oil shortages. "For medium- and long-term solutions, energy diversification must be accelerated," Bob told Tempo on Sunday, March 29, 2026.
According to him, the government has not been consistent in implementing the use of alternative energy sources. Bob recalled when the global oil prices a decade ago reached US$140 per barrel. At that time, the government had looked into vegetable-based fuel such as bioethanol, but walking it back when the oil prices went back down.
Quoting data from Trading Economics, the Brent oil price on March 30 had been rising to US$115 per barrel, which calls for energy sector transformation. "We must draft the road map and clarify the roles and disciplines in the implementation," said Bob.
The government must learn from several other countries that have successfully and consistently implemented alternative energy, including Brazil with ethanol derived from sugarcane and India, which has successfully promoted solar plants.
Since 2024, the Indian government has officially approved a US$9 billion budget to promote solar energy supply to 10 million households. India also utilizes bioethanol made from a straw mixture.
These alternative energy sources could be cheaper than conventional power. "So the feedstock is inexpensive, which cuts the cost," said Bob.
In Indonesia, however, the use of solar panels for households is restricted.
The Minister of Energy and Mineral Resources, Bahlil Lahadalia, is planning to accelerate the implementation of the mandatory bioethanol-blend fuel in response to the skyrocketing global oil prices.
"Because if the fossil fuel price surpasses US$100 per barrel, then it would be cheaper if we blend," said Bahlil on Monday, March 9, 2025, as quoted from Antara.
Bahlil had previously planned to mandate a 20 percent ethanol content in fuel or E20 by 2028 to reduce gasoline imports. In addition to the mandatory E20, he also planned to expedite the implementation of the 50 percent biodiesel policy or B50.
Read: Indonesia's Remote Work Policy Won't Disrupt Economy, Says Purbaya
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