Indonesia must seize the opportunity to reinforce its energy transition agenda despite global geopolitical disruptions, experts ssuggested in a CERAH Insight Talk discussion on Wednesday, May 7, 2025. 

The event highlighted the urgency of bolstering climate resilience and renewable energy development, especially in light of the United States' withdrawal from the Paris Agreement under President Donald J. Trump.

Shofwan Al Banna Choiruzzad, International Relations lecturer at the University of Indonesia, emphasized that while the U.S. is retreating from climate commitments, global investment in renewable energy has surpassed fossil fuel funding. He warned that attempts to exclude China from renewable supply chains could fragment global energy markets and increase transition costs.

"Indonesia must not rely on a single power bloc," Shofwan said on Thursday, May 8, 2025. "We need multilateral, multi-stakeholder partnerships to safeguard our energy transition and climate goals."

He underlined that renewable energy is not just an environmental issue, but a strategic necessity to protect Indonesia from volatile fossil fuel prices.

Wicaksono Gitawan, a policy strategist at CERAH, reminded that Indonesia remains legally bound by Law No. 16/2016, on the ratification of the Paris Agreement. Regardless of the U.S.’s stance or the fate of the Just Energy Transition Partnership (JETP), Indonesia must push forward with fossil fuel phase-out efforts.

While support from China through the Belt and Road Initiative and Japan via the Asia Zero Emission Community is growing, Wicaksono warned of inconsistencies. “Many Chinese investments still focus on coal-powered facilities, and Japan continues to back LNG and biomass, which risk prolonging fossil dependence,” he noted.

Both experts criticized Indonesia’s current energy planning documents for including transitional technologies like carbon capture and biomass co-firing, arguing these could increase emissions and delay progress.

To truly accelerate the energy shift, Wicaksono urged rapid expansion of renewable capacity, greater political will, and a just transition plan that includes retraining fossil sector workers. "Strengthening green investment and leveraging momentum from JETP can help Indonesia achieve energy sovereignty and an 8 percent economic growth target," he said.