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U.S. clean energy aid to Indonesia stalled; China’s larger, faster investments are shaping the nation’s energy future.
Indonesia’s clean energy transition has become a geopolitical flashpoint between the U.S. and China, with both nations competing for influence in the world’s top coal exporter.
While the U.S.-led Just Energy Transition Partnership pledged $20 billion to help phase out coal, only $1.2 billion has been disbursed, weakened by the U.S. withdrawal under the Trump administration.
In contrast, China has secured over $54 billion in clean energy deals with Indonesia’s state utility, including major investments in solar, electric vehicles, and battery supply chains, enabling rapid infrastructure development.
Chinese firms are building factories and projects quickly, offering jobs and energy security, though environmental concerns persist, particularly around nickel mining.
Indonesia needs over $97 billion for its transition, and with its renewable sector still small, foreign investment is critical.
China’s fast, integrated approach is proving more attractive than the U.S. emphasis on liquefied natural gas, shaping how developing nations navigate the global energy shift.
La ayuda de energía limpia de EE.UU. a Indonesia se estancó; las mayores y más rápidas inversiones de China están dando forma al futuro energético de la nación.