The Energy Transition Hub released a briefing paper on energy transition to renewable energies: opportunities for Australian cooperation with Indonesia.

Indonesia and Australia – a growing energy giant and an energy superpower. This paper explores opportunities to work together in the transition to renewable energy

Indonesia is among the world’s fastest growing countries in terms of energy demand and the largest energy user in the Association of Southeast Asian Nations (ASEAN), accounting for nearly 40% of total energy use among ASEAN member states. It is paramount for Indonesia to transition to renewable energy to continue prospering from economic growth while contributing to achieving the Paris Agreement long-term temperature goal, and – closely linked -  achieving Sustainable Development Goals (SDGs).

Indonesia has a target to achieve a share of 23% renewable energy by 2025 and 31% renewable energy by 2050. Currently, fossil fuels represent the majority of Indonesia’s energy mix, and coal plays an increasing role in Indonesia’s power plans. Fossil fuels dominate most projections of the country’s energy future. Current policies are not in line with Indonesia’s renewable energy targets and there are challenges to overcome to meet the targets and create a secure and prosperous renewable energy future. Despite the targets, and against the Paris Agreement temperature goal, Indonesia continues to pursue plans for the expansion of coal power plants with a risk of locking in investments in fossil fuels for underutilised assets. The government subsidises coal power generation making it harder for renewable energy to compete, despite the multiple benefits of renewable energy.

This briefing paper looks at opportunities for Indonesia to embark on a transition towards zero emissions based on renewable energy, including through cooperation in the South East Asia region, as well as with its neighbour, Australia, to enhance investment in renewable energy, building on the existing close cooperation in other areas, as well as large renewable energy potentials, and specific experiences and skills and export opportunities.