Indonesia’s logistics and supply-chain industry is throwing its support behind the government’s 2025 energy-security agenda, saying recent policy moves – from energy downstreaming and the accelerated shift to renewables to the B40 biodiesel programme and higher oil lifting – are driving demand across transport and distribution networks.
Yukki Nugrahawan Hanafi, Chairman of Indonesia Logistics and Forwarders’ Association (ALFI) Advisory Board and Senior Vice President of FIATA, said the package of policies has created broad multiplier effects, boosting both energy resilience and economic competitiveness.
“We appreciate the government’s commitment to improving energy security through various strategic policies. When the energy sector strengthens and focuses on the domestic supply chain, demand for logistics services rises accordingly,” Yukki said.
He added that the government’s initiatives have increased the need for transport capacity across the board—from crude oil, gas and biofuel distribution to the movement of equipment supporting energy-transition projects, as well as deliveries to remote regions to ensure equitable energy access. Rising cargo volumes, he said, could help lower national logistics costs over time through improved efficiency.
Yukki pointed to a steady climb in oil lifting as an example. Production reached 606,020 barrels per day as of November, according to SKK Migas, surpassing the level assumed in the 2025 state budget and keeping the country on track toward a 1-million-barrel-per-day target. Meanwhile, the shift to B50 biodiesel is expected to divert more crude palm oil (CPO) to the domestic market, further increasing demand for logistics services in raw-material distribution.
“We see these growth figures with optimism, and we believe they open new business opportunities for supply-chain and logistics operators supporting the energy sector,” he said.
Rising demand also coincides with improving investment sentiment. An October study by INDEF showed upstream oil and gas investment climbing 12% year-on-year in the third quarter of 2025, increasing to USD 10.37 billion from USD 9.30 billion a year earlier.
Industry leaders say deeper cross-sector collaboration will be key to sustaining momentum. “We hope the strengthened cooperation between the government, state-owned enterprises, private players and other stakeholders continues from upstream to downstream, ensuring the logistics sector remains a pillar of national energy-security policy,” Yukki said.