Indonesia Eyes Accelerated Net-Zero Target with China as Key Sustainability Partner
Indonesia is increasingly looking to international collaboration, particularly with China, to achieve its ambitious climate goals, as highlighted at the recent Indonesia International Sustainability Forum (IISF). The forum, held October 10-11, underscored the need for strategic partnerships to unlock the nation’s potential for a resilient, sustainable, and prosperous future.
The IISF, themed “Investing for a Resilient, Sustainable and Prosperous World,” brought together over 60 speakers – including more than 30 from abroad – and attracted leaders from global and local companies, multilateral institutions, financial organizations, and the academic community. A concurrent exhibition showcased cutting-edge sustainability technologies.
Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono opened the event, which focused on critical areas such as the green transition, digital transformation, smart mobility, and industrial decarbonization. Discussions centered on Indonesian President Prabowo Subianto’s commitment, made at last month’s United Nations General Assembly, to potentially reach net-zero emissions before 2050 – surpassing the previously agreed-upon 2060 target set at the COP26 UN Climate Change Conference in Glasgow.
Achieving this accelerated timeline will require significant effort, according to Investment Minister Rosan Perkasa Roeslani. He emphasized the importance of maximizing Indonesia’s vast renewable energy resources, including solar, hydro, tidal, wind, and geothermal power. “As we cannot do it alone, we need to work with all foreign parties and with local parties for achieving our net-zero goal,” Roeslani stated to over 2,000 attendees at the Jakarta International Convention Center on October 10.
Indonesia’s substantial nickel reserves – accounting for 43% of the world’s supply – are central to its strategy for developing a comprehensive electric vehicle (EV) battery ecosystem, encompassing mining, processing, refining, battery production, and recycling.
A key theme emerging from the forum was the pivotal role of technological innovation. Anindya Novyan Bakrie, chairman of the Indonesian Chamber of Industry and Commerce, noted the need for diverse technologies to reduce emissions across key sectors like electrification, transportation, construction, and industry. He stressed that Indonesia’s critical minerals will be instrumental in supporting both domestic and global transitions to net-zero economies.
China was repeatedly identified as a crucial partner in this endeavor. Helge Muenkel, chief sustainability officer at DBS Bank Group in Singapore, lauded China’s leadership in sustainability, pointing out that the nation installed more renewable energy capacity last year than the rest of the world combined. “I am the biggest fan of China,” Muenkel said. “China last year sold more new energy vehicles than traditional cars and controls the battery production value chain.” He further noted that 90% of the electric vehicles currently sold in Jakarta are manufactured in China, despite EVs representing only 14% of all new car sales.
China’s dominance in clean technology patents – accounting for 75% globally – and its manufacturing prowess position it to assist Indonesia and other ASEAN nations in meeting their net-zero targets. Harry Wardana, a research fellow at the University of Adelaide in Australia, highlighted China’s increasing efficiency in producing solar panels and other green products, suggesting it could also help Indonesia develop greener manufacturing processes, particularly given China’s status as the largest destination for Indonesian steel and iron.
However, collaboration isn’t without its challenges. David Wei, general manager of Huayou Indonesia, a subsidiary of Zhejiang Huayou Cobalt, pointed to the lack of standardized designs in emerging green technologies. “Many of those green technologies are so new, and the standards for designing them do not exist,” Wei explained, noting the discrepancies between Indonesian, Chinese, American, and European standards. Huayou Indonesia is actively collaborating with Vale Indonesia and operates nickel mining operations in North Maluku and Sulawesi, and has partnered with Indonesia Battery Corporation to build an EV battery plant in West Java.
Shinta Widjaja Kamdani, chairwoman of the Indonesian Employers Association and Co-Chair of the UN Global Investor for Sustainable Development (GISD) Alliance, emphasized the importance of the IISF 2025 in fostering cooperation between government, the private sector, international partners, and civil society. She acknowledged that such collaboration is complex, requiring both regulatory certainty and investor incentives. “China is certainly an attractive strategic partner, judging from its innovation speed and its capacity of producing green technology for making products like solar panels, batteries and electric vehicles,” she added.
The IISF underscored a growing consensus: Indonesia’s path to a sustainable future is inextricably linked to strong international partnerships, with China emerging as a particularly vital collaborator in the years ahead. .
Keep reading
- China Hints at Wider Deployment of YJ Missile Weapons (archynewsy.com)
