The Energy Transition in Indonesia

Indonesia is positioning itself as a pivotal player in the global energy transition, leveraging its vast mineral wealth and diverse energy mix. While still heavily reliant on petroleum, coal, and natural gas, Indonesia is increasingly turning to renewable sources like geothermal, hydro, and solar energy to diversify its power generation and reduce carbon emissions. The country is home to some of the world’s largest reserves of nickel, which is crucial for the development of batteries and electric vehicles, making it a key player in the clean energy transition. In addition to nickel, Indonesia produces significant amounts of cobalt, tin, copper, and other critical minerals, all essential for energy storage and green technologies. However, the country faces challenges related to resource nationalism and environmental concerns, prompting the government to implement strong ESG reforms aimed at balancing economic growth with sustainable practices. Geopolitically, Indonesia’s strategic location in Southeast Asia, coupled with its membership in organizations such as ASEAN, G20, and the G77, enables it to promote key trade partnerships and attract global investments in its energy and mineral sectors.