Indonesia Taps Strategic Momentum at Regional Energy Transition Dialogue (RETD) to Accelerate National Energy Security

Clean, Affordable and Secure Energy (CASE) for Southeast Asia Consortium holds another Regional Energy Transition Dialogue (RETD) 2025 to reconvene and discuss the plan ahead for Southeast Asia’s energy future. Representatives from Indonesia, Philippines, Thailand and Vietnam sit together and share their challenges and opportunities to push for renewable energy to achieve climate goals both nationally and regionally. 

 

Bangkok, 23 July 2025 — The year 2025 presents a pivotal moment for Southeast Asia’s energy transition. As the region responds to increasingly complex geopolitical dynamics and global market fluctuations. This context adds complexity to the region’s strategic energy planning. This momentum is guided by key regional milestones, including the finalization of the ASEAN Plan of Action for Energy Cooperation (APAEC) Phase I: 2026–2030 and the completion of the ASEAN Interconnection Masterplan Studies (AIMS III Phase), will provide actionable insights for advancing regional power system integration and cross-border energy trade, further shaping the region’s energy infrastructure and its geopolitical significance.

Recognizing the strategic urgency of these developments, government representatives, energy experts and stakeholders gathered in Bangkok for the CASE Regional Energy Transition Dialogue (RETD) 2025, held under the theme “Geopolitical Currents & Energy Shifts: Southeast Asia’s Strategic Future.” The two-day event provided a high-level platform for dialogue on how Southeast Asia can navigate global uncertainties while accelerating its shift toward cleaner, more resilient energy systems.

Hosted by the Clean, Affordable and Secure Energy for Southeast Asia (CASE) project, funded by the German Federal Ministry for Economic Affairs and Climate Action (BMWK) and implemented by GIZ—the Dialogue brought together stakeholders from Indonesia, the Philippines, Thailand, and Viet Nam. Through a series of expert-led sessions and policy exchanges, participants explored the intersection of energy security, regional cooperation, and geopolitical change.

Indonesia Charts Path to Regional Leadership in the Clean Energy Era

As the region’s largest economy and energy consumer, Indonesia is stepping up to lead Southeast Asia’s clean energy transition. As presented by Yusuf Suryanto, Director for Transmission, Electricity, and Aerospace of The Ministry of National Development Planning/Bappenas, the national plan includes development of renewable power plants (hydropower, solar, thermal, wind, and biomass), and the development of electricity network systems through interconnection and smart grid. To support national development goals, Indonesia is also advancing power system reforms focused on private financing, restructuring tariff and subsidy, and establishing a National System Operator to create a more efficient, transparent, and resilient electricity sector.

Furthermore, the session was followed by Fabby Tumiwa, the Chief Executive Officer of Institute for Essential Services Reform (IESR), emphasizing the urgent need to maximize renewable energy utilization to enhance Indonesia’s national energy security. “Solar is the most cost-effective solution to supply electricity beyond 2030,” Fabby stated, citing IESR’s energy transition model. As of mid-2024, Indonesia’s cumulative installed energy storage capacity stands at approximately 35 MWh—mainly from battery energy storage systems (BESS) supporting solar PV in isolated systems. Based on announced projects, this capacity is expected to exceed 30 GWh by 2030, highlighting the significant scale-up required over the next few years. Fabby urged regulatory reform, infrastructure enhancement, and robust financial mechanisms to unlock Indonesia’s renewable potential. 

To modernize and future-proof PLN’s grid, Abdul Kudus, Vice President Financial Planning of PT PLN, said that PT PLN is prioritizing smart grid investments, inter-island transmission infrastructure (Green Enabling Super Grid), and flexible generation technologies, in line with the new RUPTL 2025–2034. In addition to the existing business as usual financing schemes, he also highlighted the need for diverse financing models—such as PPPs and asset-backed securities—to meet PLN’s projected USD 188 billion total investment needs while keeping the power sector financially sustainable. Regional learning plays a key role in shaping these strategies, particularly through knowledge-sharing on flexible system operations and innovative financing frameworks.

From policy perspectives, Suharyati from the Secretariat General of National Energy Council said that Indonesia will update the National Energy Policy to prioritize renewable energy, energy efficiency, and flexible technologies such as BESS, CCS, and hydrogen to enhance long-term energy security. Investment will be directed not only through state budgets but also through incentives and international financing mechanisms to support the transition. These efforts are aligned with emission reduction targets, aiming for peak energy sector emissions by 2035 and full absorption by 2060, ensuring that energy security and decarbonization go hand in hand.

Also, as presented by Hasan Maksum from the Directorate General of Electricity (DJK) Ministry of Energy and Mineral Resources, Indonesia is prioritizing clean energy technologies such as solar, wind, hydro, bioenergy, green ammonia, and hydrogen to secure future electricity supply while reducing emissions. The national strategy focuses on expanding renewable energy integration, modernizing the power system, and strengthening flexibility through battery storage, interconnection, and grid digitalization. To unlock local clean energy manufacturing, MEMR has issued clear TKDN (local content) requirements for various RE technologies, covering equipment, services, and project components, ensuring industrial growth and supply chain resilience.

Regional Dialogue Anchors Collective Vision

Throughout RETD 2025, participants from organizations including Agora Energiewende, NewClimate Institute, Chulalongkorn University’s Energy Research Institute, ASEAN Centre for Energy, International Energy Agency (IEA), ILO, SEforALL, and UN ESCAP, joined discussions focused on energy diversification, power system flexibility, clean energy supply chains, and workforce development to drive a just and inclusive energy transition throughout Southeast Asia.

The energy transition is not a destination —it is a long, complex journey, especially for a region as diverse as Southeast Asia. Yet, the Regional Energy Transition Dialogue (RETD) has made it clear that this region holds tremendous potential to become a global leader in the clean energy shift. Through collective ambition, policy coherence, and shared investment in solutions, Southeast Asia can transform its challenges into opportunities.

Indonesia, as the largest economy and energy consumer in the region, is uniquely positioned to take a leadership role. Indonesia sees regional collaboration not as a choice, but as a necessity to align standards, to share knowledge and innovation, ensure no country is left behind in this transition and fosters meaningful dialogue that transcends borders and sectors. It creates a common space to discuss the complexities of transition while identifying actionable pathways toward decarbonization, energy security, and economic resilience. RETD 2025 reaffirmed a shared commitment to advancing a secure and sustainable energy future for Southeast Asia.

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