SUSTAINABLE STRATEGIES IN ENERGY RESILIENCE AND DOWNSTREAM DEVELOPMENT: DOWNSTREAMING AND SUSTAINABILITY ARE A MUST

Abstract

The 9th Jakarta Geopolitical Forum 2025 focused on “Geoeconomic Fragmentation and Energy Resilience.” The discussions underscored the urgent requirement to balance industrial growth, environmental sustainability, and economic resilience amid global trade tensions, decarbonization challenges, and the renewable energy transition. At national level, Indonesia faces structural disparities as archipelagic nation. The industrial activity concentrated in Java while Eastern Indonesia underdeveloped. The study use the New Structural Economics framework, the Environmental Social Governance principles (ESG), and the national interest concept (Wawasan Nusantara). Empirical studies show that Indonesia’s government has banned raw material exports, progress in building smelters and bioenergy industries, while cases of similar policy from China and Malaysia demonstrate both opportunities and constraints in advancing domestic value addition. The study found that downstreaming, renewable energy initiatives, and multi-stakeholder collaboration is strategic to strengthen competitiveness, reduce external vulnerabilities, and expand growth beyond Java. By embedding national resilience and archipelagic integrity into industrial and energy strategies, Indonesia positions itself as a regional leader in shaping equitable energy transitions. The study concludes that consistent regulation, advanced technology, skilled workers, and cooperation with other countries are for achieving resilience, inclusivity, and sustainability in fragmented global order.