US exit from Paris Agreement raises questions about Indonesia’s clean energy goals

JAKARTA – Indonesia has questioned the fairness of the Paris climate agreement after

the US announced its withdrawal from the pact

, even as green groups in Indonesia look to China to take the lead in climate issues.

Indonesia’s special climate change and energy envoy Hashim Djojohadikusumo said at a forum in Jakarta on Jan 31 that he considered the Paris Agreement no longer relevant for the country.

“Indonesia produces three tonnes of carbon while the US produces 13 tonnes, yet we are the ones that were being told to close our power plants and reduce our steam power plants,” he said, referring to carbon dioxide emissions per capita.

“So, where is the sense of justice here?”

Noting that switching to clean energy is costly, Energy and Mineral Resources Minister Bahlil Lahadalia said at a forum on Jan 30: “We saw that even the country that initiated the (climate) agreement has backed off, (so) why do we want to jump off that cliff?” 

Nearly 200 countries signed the Paris Agreement in 2015 to limit global warming to 1.5 deg C above pre-industrial levels. 

It is not just the Paris Agreement. 

The US has stepped down from its co-leadership role at the Just Energy Transition Partnership (JETP) with Indonesia, but remains a member with the same financial commitments. The JETP promised financing from countries such as the US to help wean the South-east Asian nation off fossil fuels.

Mr Paul Butarbutar, the head of the JETP secretariat in Indonesia, told the media on Jan 31 that Germany will replace the US as the co-lead along with Japan under the framework.

These developments have raised questions about Indonesia’s commitment towards its clean energy goals.

Dr Klaus Heinrich Raditio, a geopolitics analyst at the Driyarkara School of Philosophy’s graduate programme, told The Straits Times: “Previously, the one who supported Indonesia in transitioning to clean energy was the US under (then) President Joe Biden through (the) JETP framework.” The Indonesian institution that operated the framework – the Coordinating Ministry for Maritime and Investment Affairs – has also been dissolved.

Not only is the US withdrawing from the framework, but the Indonesian institution that operated the framework – the Coordinating Ministry for Maritime and Investment Affairs – has also been dissolved.

There are questions over who will continue the framework and the relevancy of such a partnership, he added.

Meanwhile, environmental groups in Indonesia and elsewhere in Asia are looking to China to fill the climate leadership void in the absence of the US.

At a Jan 24 meeting in Quezon City in the Philippines, representatives from 50 environmental groups from across Asia signed a declaration calling for China to offer more financial support and technology transfer to help developing countries move from fossil fuels to clean energy.

They highlighted Chinese President Xi Jinping’s statement on support for clean energy projects in developing countries made at the Belt and Road Summit in 2023.

Mr Pius Ginting, coordinator of the Action for Ecology and People’s Emancipation, a non-governmental agency based in Indonesia that signed the declaration, said significant financing will support clean energy implementation in the region.

Mr Putra Adhiguna, managing director of Energy Shift Institute, a think-tank based in Jakarta, said Beijing is the largest renewable energy financier in South-east Asia, citing reports from the Lowy Institute think-tank.

More than 30 per cent of China’s overseas power generation investment is in South-east Asia, mainly in coal and hydropower.

China is a natural partner in the transport sector as it dominates the electric vehicle global supply chain, he added.

While China has all it takes to take over the role of the US in global climate finance and investments, Mr Adhiguna said Beijing needs to show a stronger commitment to climate diplomacy.

“To date, China always avoids being labelled as a ‘rich country’ because it will be obliged to provide climate funding,” he said.

At the UN COP29 climate talks in Baku, Azerbaijan, in 2024, a growing number of delegates urged China not to be categorised as a developing country.

Mr Adhiguna said that regardless of what the US or China does, it is important for countries like Indonesia to stick to their climate goals.

Indonesia, one of the largest emitters of greenhouse gases, has pledged to achieve carbon neutrality by 2060.

“But some leaders have not realised that what’s at stake is Indonesia’s future competitiveness, investability and economy, not just emissions,” he said in reference to the comments made recently by Indonesian top climate officials.

But Mr Adhiguna added that he remained “hopeful of Indonesia’s energy transition”.

Similar optimism is shared by Dr Filda Yusgiantoro, executive director of Indonesian energy think-tank Purnomo Yusgiantoro Centre.

She told ST that while the US’ withdrawal shows dwindling commitments to collectively reduce global carbon emissions, she is convinced that Indonesia is on track to reach net-zero emissions.

“We believe energy transition can be done gradually from fossil fuels to renewables... It’s a work in progress,” she said.

Correction note: In an earlier version of this story we said that the US has withdrawn from the JETP. This is incorrect. The US has stepped down from its co-leadership role within the JETP but remains a member with the same financial commitments. We are sorry for the error.