Beijing, June 10, 2025 – Commemorating 75 years of diplomatic relations between Indonesia and China, the Institute for Essential Services Reform (IESR) believes that the strategic cooperation between the two countries should focus on accelerating energy transition, developing a green economy, and addressing global climate challenges.
This was conveyed during the High-Level Dialogue: Advancing Indonesia–China Cooperation on Clean Energy and Green Development, held in Beijing, China, on Tuesday (10/6). The event was organized by IESR and supported by the Indonesian Embassy in China, the BRI Green Development Coalition (BRIGC), World Resources Institute (WRI) China, and the Chinese Renewable Energy Industries Association (CREIA).
As the world’s largest economies and emitters, Indonesia and China share a moral responsibility to demonstrate leadership among developing nations in tackling the threat of climate change. This can be achieved through a strategic partnership to realize a green and sustainable energy transformation. As a global leader in renewable energy development, China can assist Indonesia with infrastructure investment and the development of renewable energy technology industries, institutional capacity building, and supporting the decarbonization of mineral processing and downstream industries.
Fabby Tumiwa, Executive Director of IESR, stated that based on IESR’s analysis, Indonesia possesses immense technical potential for renewable energy, exceeding over 7,700 GW, which is more than twice the official government data. Solar energy, which can generate electricity through solar power plants, is the largest energy resource.
IESR believes that the massive utilization of solar energy potential, coupled with the use of energy storage and grid modernization, represents the fastest and most cost-effective decarbonization pathway for the electricity sector.
“Indonesia is facing the challenge of meeting increasing energy demands while ensuring high and sustainable economic growth. Despite abundant potential, there are views that doubt the ability of renewable energy sources like solar and wind to become the backbone of the national energy system due to their intermittent nature. However, other countries such as China, India, and Australia have proven that solar intermittency can be overcome. Furthermore, energy storage technologies like lithium-ion, sodium-ion, and even solid-state technologies are becoming more affordable, which can enhance the reliability of solar and wind power plants. Pumped hydro storage and hydrogen storage technologies also serve as complementary solutions,” Fabby asserted.
Fabby believes that the opportunity for a strategic partnership between Indonesia and China in renewable energy development lies in building a solar energy technology ecosystem. IESR proposes an initiative called the China – Indonesia Solar Partnership. This initiative involves the production of the latest generation solar cell and module technology, the electrification of Indonesian islands with solar power plants and Battery Energy Storage Systems (BESS) to substitute diesel power plants, and joint research for the utilization of solar energy technology suitable for tropical climates.
Additionally, this initiative encourages green financing for solar PV manufacturing and supply chains as well as solar power plants, cooperation in carbon emission reduction, and international carbon trading from emission reductions from large-scale solar projects.
“This partnership is ideal for both countries, leveraging China’s mastery of solar cell technology and Indonesia’s solar energy potential and need to build a green technology industry as an engine for economic growth, which can also become a future industrial commodity. This partnership is expected to be part of a new partnership plan between the two countries and can be formalized this year,” Fabby said.
Parulian Silalahi, Deputy Head of the Indonesian Mission in Beijing, stated that this energy transition is not only about reducing emissions but also about creating many new jobs and investment opportunities. Some foreign investors have already started investing in this sector. For example, Trina Solar from China and SEG Solar from the United States have built solar panel factories in Central Java.
“China, with its technological capabilities and production in the renewable energy sector, has great opportunities. Not only as a supplier of components but also to build an integrated supply chain in Indonesia. This will accelerate the energy transition, not only in Indonesia but also in the Southeast Asian region,” Parulian said.
Zhang Jianyu, Executive Director of the BRI Green Development Institute, noted that the climate crisis is a global threat, but developing countries bear the heaviest burden. In this regard, Indonesia and China can unite in renewable energy cooperation for climate crisis mitigation, open to global collaboration without exception. Chinese companies such as JA Solar, Trina Solar, and Jinko Solar play a significant role in supplying solar panels and technical expertise.
