China's Green Investments and Indonesia's Energy Transition

This commentary discusses the role of China's green investments in Indonesia's energy transition, highlighting the collaboration between the two nations in renewable energy technology. The document outlines recent agreements made during Indonesian President Prabowo Subianto's visit to China, which aim to strengthen cooperation in green energy, including new energy vehicles and lithium batteries. It details significant financial commitments, such as a US$10 billion deal and additional agreements worth US$12.6 billion directed towards renewable energy projects. Despite these advancements, the commentary notes that Indonesia faces substantial internal challenges, including a heavy reliance on coal-fired power plants and regulatory hurdles that complicate the energy transition. It emphasizes that while China's investments can catalyze progress, their overall impact may be limited due to ongoing coal infrastructure and local resistance. The document concludes by stating that a comprehensive approach is necessary to navigate these complexities and achieve a successful energy transition.