Indonesia to Seek Chinese Assistance for Renewable Projects

A cabinet minister indicated that Indonesia will seek Chinese assistance for renewable energy and infrastructure projects when President Joko Widodo attends the next Belt and Road Forum in Beijing. Any collaboration with China would run parallel to the Just Energy Transition Partnership (JETP), a $20 billion agreement Indonesia has with a group of countries led by the United States to assist decarbonize its energy industry, acting Chief Investment Minister Erick Thohir said in a Reuters interview over the weekend.

The JETP discussions have not been going well. Many senior Indonesian officials have expressed concern that Western countries are hesitant to finance the early retirement of coal power stations, and that JETP loans will have exorbitant interest rates. Southeast Asia's largest economy has promised to achieve net zero greenhouse gas emissions by 2060, with a substantial part of that effort centred on improving its energy sector.

"China has made significant advances in renewable energy development and has vast hydropower resources." So it would be beneficial to learn from it," Erick said, adding that the two countries were still investigating what kind of relationship would be viable. Indonesia is poised to publish JETP investment plans next month, three months behind its initial timetable, ahead of the United Nations COP28 climate summit.

Erick declined to give specifics on the JETP meeting, adding only, "We cannot wait...there hasn't been any funding as of yet."He added that Jakarta is open to working with any nation willing to help it achieve its climate goals and believes in Indonesia's economic potential, but any cooperation must be on Indonesia's terms.

"We want this to fit our grand plan, the Indonesia blueprint, not the blueprint of other countries," Erick said.