Indonesia’s President Joko Widodo is set to seek China’s assistance for renewable energy and infrastructure projects during the upcoming Belt and Road Forum in Beijing, as reported by Reuters on October 16. This move comes in line with Indonesia’s commitment to decarbonize its energy sector and reach net zero greenhouse gas emissions by 2060. The collaboration with China is viewed as a parallel effort to the Just Energy Transition Partnership (JETP), a USD20bn deal Indonesia has with a U.S.-led group of countries. However, JETP discussions have faced challenges, with Indonesian officials expressing concerns about Western countries’ reluctance to finance the early retirement of coal power plants and the imposition of high-interest rates on loans. Indonesia remains open to collaborations with any nation willing to support its climate goals, emphasizing that cooperation must align with Indonesia’s terms and plans.

During the Belt and Road Forum, President Widodo will showcase a USD7.3bn high-speed railway project called “Whoosh,” funded by Chinese loans. He plans to discuss the extension of this railway project by 700 kilometers to Surabaya city and explore trade relations with Chinese leaders, including President Xi Jinping and Premier Li Qiang. While seeking Chinese support, Indonesia emphasizes the importance of any partnership aligning with its national blueprint and economic potential, ensuring that collaborative efforts contribute significantly to the country’s sustainable development and climate objectives.

Sources:

https://www.reuters.com/sustainability/indonesia-seek-chinas-help-develop-renewables-belt-road-forum-2023-10-16/