Jakarta – Experts have warned the government against accepting all forms of investment in the name of energy transition, even though many parties, including China and Japan, claim to support the green agenda. According to them, Indonesia is now faced with a new challenge to ensure that incoming foreign investment is truly in line with the 2060 carbon-neutral target.
In a CERAH Insight Talk discussion themed “Climate Agenda and Energy Transition Amidst the Heated International Geopolitical Situation” on Wednesday, 7 May, University of Indonesia International Relations Lecturer Shofwan Al Banna Choiruzzad stressed the importance of maintaining the direction of the national energy transition policy so as not to be dragged down by foreign interests that are not necessarily environmentally clean.
“Indonesia should not only depend on one country or big power. Multilateralism and multi-stakeholder partnerships must be strengthened so that outside economic and geopolitical interests do not monopolise the energy transition,” he said.
Foreign energy investment ‘not always green’
China, through the Belt and Road Initiative (BRI) scheme and Japan, through the Asia Zero Emission Community (AZEC), are the two main partners that are now shifting their investments to “green” energy projects in Indonesia. However, reality shows that some of these investments are still targeting fossil energy-based projects.
“China is starting to invest in the renewable energy sector, but many of their projects in Indonesia still support steam power plants for the nickel industry. Japan is also still pushing natural gas (LNG) and biomass, which risks extending our dependence on fossil fuels,” said Wicaksono Gitawan, Policy Strategist from research organisation CERAH.
This concern is even stronger after some official government documents, such as the 2024 National Electricity General Plan (RUKN) and Permen of ESDM No. 10 of 2025, still contain plans to utilise technologies such as carbon capture storage (CCS) and biomass co-firing, which are considered less effective and extend the life of power plants.
According to Shofwan, the transition to clean energy is environmentally relevant and a long-term strategy to maintain national energy sovereignty. “Dependence on fossil fuels makes us vulnerable to global price fluctuations. Energy diversification through domestic resource renewal is a must, not an option,” he said.
Although the United States has withdrawn from the Paris Agreement and global clean energy funding plans such as the Just Energy Transition Partnership (JETP) face challenges, Indonesia remains legally bound through Law No. 16/2016, which ratified the Paris Agreement. “Indonesia has a legal and moral obligation to continue the energy transition. We cannot go backwards despite global political dynamics,” said Wicaksono. (Hartatik)
Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2024)
