Make Energy Transition A Continuous Indonesia-China Conversation

(MENAFN- Asia Times) On December 15, inside a government-linked think tank in Beijing, a conversation took place with implications far beyond diplomacy.

When Eddy Soeparno, deputy speaker of the Indonesia's Consultative Assembly, met with leaders of the China Institute for Innovation and Strategic Development (CIIDS), the discussion focused on a challenge confronting much of the developing world: how to pursue growth without locking in a climate-disastrous future. It also highlighted the need for more frequent dialogue between China and Indonesia on energy transition.

For years, bilateral energy cooperation has been dominated by coal. Power plants, industrial zones and nickel smelters – many financed or built by Chinese companies – have relied on fossil fuels. While this approach accelerated industrialization, it came at a high environmental cost. As climate impacts intensify and emissions targets tighten, the model is becoming increasingly untenable.

Indonesia now faces a clear contradiction. The government has pledged to reach net-zero emissions by 2060, with President Prabowo Subianto signaling the possibility of an earlier timeline. Yet coal-fired power plants continue to be developed, often with foreign backing, locking the country into decades of additional emissions.

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China's involvement is central to this dilemma. Despite President Xi Jinping's 2021 pledge to end overseas coal financing, Chinese companies remain active in expanding coal capacity in Indonesia, particularly to power nickel processing for the electric vehicle supply chain. The irony is stark: materials essential to the green transition are still being produced using carbon-intensive energy.

This is why Soeparno's engagement with CIIDS is significant. In China, think tanks often play a direct role in shaping policy. Conversations in these settings can influence how Beijing assesses its strategic interests abroad. By placing Indonesia's decarbonization goals on the table, Jakarta is seeking to shape not only investment decisions but also the thinking that guides them. Sustained engagement of this kind will be essential if both sides aim to align development with climate commitments.

Indonesia's message was straightforward. The government is strengthening its low-carbon policy framework, including carbon pricing and waste-to-energy initiatives. Long seen as an urban burden, waste is increasingly viewed as a potential source of clean energy and innovation – an area where Chinese technology and expertise could contribute meaningfully.

The paradox is that China already leads the world in renewable energy manufacturing, from solar panels and wind turbines to batteries and electric vehicles. At home, renewable capacity has expanded rapidly. Abroad, however, investment patterns – especially in emerging economies – have often favored coal and gas.

The constraint is not technological capability but incentives. Capital follows policy signals. If coal remains the fastest and cheapest option for powering industry, it will continue to dominate. This is why diplomatic efforts like Soeparno's visit matter: They signal Indonesia's desire for a partnership centered on sustainability, resilience and long-term value rather than short-term expedience.

Such a shift would serve both countries. Indonesia has vast renewable potential, from solar and geothermal to biomass. China is seeking overseas markets for its green technologies and financing. Cooperation focused on renewables, energy storage and clean industrial power would reduce emissions while positioning Indonesia more competitively as global markets move away from carbon-intensive production.

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Transition does not mean halting development. Indonesia still needs reliable energy to industrialize, create jobs and process its mineral resources. But coal-powered nickel smelters may soon become liabilities as carbon regulations tighten globally.

This is the real test of the Indonesia-China relationship. Can the partnership move beyond a high-emissions development model and evolve into one suited to a low-carbon future?

For Indonesians, climate change is no longer abstract. Floods, heatwaves, and environmental degradation are already affecting daily life. Energy choices made today will shape the country's resilience for decades. In this context, cooperation on energy is not only economic; it is moral.

Meetings like the one between Soeparno and CIIDS will not transform energy systems overnight. But they can help reset priorities. By pushing for cleaner, more sustainable cooperation – and for these conversations to happen more often – Indonesia is seeking to redefine its relationship with China.

The question is whether both countries are prepared to act on that vision and move decisively away from coal toward a cleaner, more responsible energy future.

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