The global shift toward cleaner and more sustainable energy sources is a pressing issue that cannot be solved by any one country alone. Climate change, rising energy demands, and the finite nature of fossil fuels are prompting nations around the world to seek collaborative solutions through the advancement of new and renewable energy (NRE). In this context, international cooperation is essential to accelerate innovation, strengthen policies, and mobilize financing for global NRE development.
As a developing country with vast renewable energy potential, Indonesia has actively engaged in numerous international forums and institutions to support its national energy transition agenda. Through partnerships with global organizations and participation in multilateral cooperation platforms, Indonesia is striving to enhance its capacity to develop renewable energy while demonstrating a strong commitment to a cleaner, fairer, and more sustainable energy system.
Global Coordination through International Institutions
The International Renewable Energy Agency (IRENA) plays a pivotal role in driving the global energy transition. Established in 2009, IRENA serves as a center for intergovernmental cooperation to promote renewable energy adoption worldwide. It facilitates knowledge exchange, policy development, and technical assistance to help member states formulate sustainable energy strategies. IRENA has become a key partner in accelerating the global energy transition agenda.
In its latest reports, Indonesia is recognized as “a key player in Southeast Asia’s energy transition”, owing to its abundant renewable energy resources such as geothermal, hydropower, and solar energy. IRENA supports Indonesia in developing national decarbonization strategies, renewable energy roadmaps, and data-driven policy forums. Given its strategic position as the region’s largest energy consumer with vast renewable potential, Indonesia is viewed as a crucial actor in promoting energy security and affordability across Southeast Asia.
According to IRENA’s Indonesia Energy Profile 2024, the country has recorded an increase in renewable electricity capacity, including solar energy (324 MW), bioenergy (288 MW), and geothermal (237 MW). However, the continued expansion of fossil-based capacity highlights the urgent need to accelerate the clean energy transition.
IRENA also provides financing support through the Energy Transition Accelerator Financing (ETAF) platform, designed to help developing countries—including Indonesia—access funding for energy transition projects. ETAF allows public and private sector initiatives to seek technical and financial assistance to advance clean energy implementation on the ground.
Initiatives and Financing for Renewable Energy
Transitioning to clean energy requires significant investment, technological innovation, and consistent policy support. International collaboration is essential to speed up the global energy transformation. Cross-border cooperation enables the pooling of resources, expertise, and technology to address common challenges—such as the development of renewable energy technology and large-scale project financing.
A major barrier in developing countries is the high cost of investment in clean energy infrastructure. This often limits progress, especially where fiscal space is constrained. Here, international institutions play a critical role in providing access to global financing and supporting national energy transition initiatives.
One vital area of cooperation is technology transfer from developed to developing countries. Advanced economies can assist by providing technical support, training, and funding to help developing nations adopt clean energy solutions. In addition, international financial institutions like the World Bank and the Green Climate Fund are instrumental in financing sustainable energy projects.
These financing mechanisms not only accelerate clean technology adoption, but also generate economies of scale, lower costs, and broaden access to clean energy—especially in countries like Indonesia. Thus, international cooperation is not merely about global solidarity—it is also a pragmatic strategy to achieve climate goals and sustainable development.
For example, in 2023, Indonesia received USD 500 million in support from the Climate Investment Funds (CIF) to accelerate the early retirement of coal-fired power plants under the Just Energy Transition Partnership (JETP). Collaborations with the Asian Development Bank (ADB) and the World Bank are also facilitating the development of solar and wind energy projects across multiple provinces.
National Regulation as a Foundation for Global Engagement
Indonesia’s energy transition is also backed by a robust legal framework that provides policy clarity and direction. Law No. 30 of 2007 on Energy (“Energy Law”) mandates the development of new and renewable energy as part of the national energy security and independence agenda. Article 3(b) of the Energy Law states:
“To support sustainable national development and improve national energy security, energy management aims to ensure energy availability from both domestic and international sources.”
This provision highlights the government’s responsibility to ensure continuous energy availability to support national development and strengthen energy resilience. The mention of “domestic and international sources” also reflects Indonesia’s openness to foreign cooperation and investment in line with its global energy engagement. It legitimizes Indonesia’s ability to:
- Import energy in specific situations to maintain supply stability;
- Attract foreign investment in the NRE sector; and
- Actively participate in international forums.
In essence, energy governance in Indonesia is not limited to domestic resource exploitation. It also welcomes international imports, foreign investment, and cross-border technology collaboration, as long as the objective is to ensure sustainable and secure energy supplies. This normative foundation is key to enabling cross-sectoral energy policies, including NRE development through international partnerships such as IRENA and JETP.
The regulatory framework is further reinforced by Presidential Regulation No. 22 of 2017 on the National Energy Plan (RUEN), which targets a 23% renewable energy mix by 2025. This legal basis not only confirms Indonesia’s national commitment but also provides the foundation for its active participation in international forums and global energy initiatives.
With a strong regulatory foundation, Indonesia is well-positioned to forge strategic global partnerships. The synergy between national regulation and international support is key to achieving a just and sustainable energy transition. Going forward, Indonesia must continue expanding its strategic alliances, strengthening energy diplomacy, and ensuring that every policy step is backed by sufficient financing, cutting-edge technology, and skilled human resources.***
Daftar Hukum:
- Undang-Undang Nomor 30 Tahun 2007 tentang Energi (“UU Energi”).
- Peraturan Presiden Nomor 22 Tahun 2017 tentang Rencana Umum Energi Nasional (“Perpres 22/2017”).
Referensi:
- Kolaborasi Internasional untuk Masa Depan Energi yang Berkelanjutan. Solarkita. (Diakses pada 15 Juni 2025 pukul 19.02 WIB).
- RI Terima Pembiayaan dari CIF untuk Matikan PLTU Batubara Rp7,7 T. Katadata. (Diakses pada 15 Juni 2025 pukul 19.55 WIB).
- Peran Diplomasi dalam Perubahan Energi. Antaranews. (Diakses pada 15 Juni 2025 pukul 19.55 WIB).