The global climate crisis has fundamentally changed the landscape of international relations. In the Asia-Pacific, the largest contributor of carbon emissions and the region with the most dynamic economic growth, the transition to sustainable energy is no longer optional.
It is an existential imperative. Indonesia has emerged as a key actor in that transition. With the world's fourth-largest population, the largest economy in Southeast Asia, and abundant natural resources, the country holds a strategic role in shaping the direction of sustainable energy policy across the region.
A Domestic Foundation Worth Leading From
Indonesia's international role starts at home. The country sits on extraordinary renewable energy potential: solar, wind, ocean currents, geothermal, and bioenergy. Its geothermal reserves alone account for roughly 40% of the global total, and its hydropower potential is significant.
However, the classic challenge of dependence on coal for electricity generation still looms. This is where Indonesia's credibility lies, its commitment to energy transition will be even more meaningful if it succeeds in overcoming fossil fuel lock-in.
This commitment is outlined in the Enhanced Nationally Determined Contribution (ENDC) document, in which Indonesia targets a 31.89% reduction in its own emissions and up to 43.2% with international assistance by 2030. The ambitious target of achieving a 23% renewable energy mix by 2025 and carbon neutrality by 2060 is the mainstay of Indonesia's energy diplomacy.
Three Roles Indonesia Is Playing at the Regional Level
Indonesia is not a passive participant in Asia-Pacific's energy agenda. It is actively driving it, through at least three distinct roles.
The first is as an advocate for a just energy transition. Through its G20 leadership and its 2023 ASEAN Chairmanship, Indonesia has consistently argued that the energy transition must not come at the cost of economic development or result in energy poverty. The concept it has championed is inclusive sustainable energy.
One concrete example is its success in mobilizing US$20 billion in funding from developed countries for the Just Energy Transition Partnership (JETP). This partnership, although still in the implementation phase, serves as a new model for other developing countries in the Asia-Pacific region.
Second, as a driver of regional electricity grid connectivity. Indonesia's ambition to build the Sumatra-Java-Bali Super Grid and connect it to the ASEAN Power Grid is a strategic transnational project.
Currently, by integrating the green electricity market, Indonesia enables neighboring countries such as Malaysia, Singapore, and Brunei to import electricity from Sumatra's hydropower or geothermal energy. This directly reduces the need for fossil fuel power plant investment elsewhere in the region while creating a cleaner and more stable regional energy supply.
Third, as a hub for sustainable green technology innovation. Indonesia has begun building a global supply chain ecosystem for electric batteries, utilizing the world's largest nickel reserves. Through downstreaming policies, Indonesia not only exports raw materials but also produces precursors and cathodes for electric vehicles.
Integrated battery factories in Morowali (Central Sulawesi) and Halmahera (Maluku Islands), in collaboration with companies from South Korea and China, make Indonesia a key node in the Asia-Pacific green technology supply chain. This reduces the region's dependence on raw materials from other continents while simultaneously reducing emissions from the global logistics chain.
The Gaps Between Ambition and Credibility
Despite bright prospects, the path has not always been smooth. Currently, the Indonesian government continues to face criticism for continuing to build new coal-fired power plants (PLTU) that fall into the captive power category for industry.
Further, several financing issues remain a stumbling block, including the frequent failure of developed countries to meet their climate finance commitments.
In forums such as the ASEAN Summit, Asia Pacific Economic Cooperation (APEC), and the United Nations Climate Change Conference (UNFCCC), Indonesia plays the role of spokesperson for developing countries, urging a balance of climate justice, including access to clean technology, sufficient funding, and fiscal space for a transition without hindering growth.
Furthermore, Indonesia is also active in various technical partnerships, such as the Breakthrough Agenda with the UK and cooperation with Japan on geothermal power development. South-South collaboration is also being encouraged, for example, by sharing experiences in sustainable palm oil management for bioenergy with African and Pacific countries.
Towards Credible Global Leadership. In an Asia-Pacific region rife with geopolitical competition and economic pressures, Indonesia offers a model: green growth based on equity and collaboration. Indonesia's role will be meaningless if it fails to demonstrate its commitment domestically, namely by phasing out coal-fired power plants and massively accelerating renewable energy projects.
Going forward, to solidify its position as a regional leader, Indonesia needs to strengthen three areas: first, reforming energy subsidies to be more targeted and supportive of renewables; second, transparency in the implementation of the Just Energy Transition Partnership/JETP project; and third, strengthening domestic energy research and innovation institutions.
With these steps, Indonesia will not only be part of the solution to the climate crisis in the Asia-Pacific but also a pioneer in redefining international relations to be more equitable and sustainable. The region's energy future is being built today, and Indonesia holds one of the key keys.
