TEMPO.CO, Jakarta - The withdrawal of the United States from the Paris Agreement is said to have an insignificant impact on Indonesia, as the most critical thing is Indonesia's own commitment to the climate deal.
"Indonesia already has an obligation to report to the panel overseeing the Paris Agreement, the United Nations Framework Convention on Climate Change (UNFCCC)," said Indonesia's Policy Strategist Cerah Wicaksono Gitawan during a discussion in Jakarta on Thursday, May 8, 2025.
Bound by the Paris Agreement, Indonesia is obliged to report to the UNFCCC through the Nationally Determined Contribution (NDC) document. This document contains the instruments used to measure Indonesia's strategies, policies, as well as mitigation and adaptation action plans for climate change to achieve the net zero emission target by 2060.
Previously, the United States exited the Paris Agreement based on the Executive Order issued by President Donald Trump on January 20, 2025. Trump said the climate agreement could hinder domestic economic and industrial growth and harm the American national economic interests.
The impact on Indonesia and other developing countries is the reduced climate funding, which could potentially push back the transition from fossil energy to green energy. Moreover, the Trump administration also refused to participate in the Just Energy Transition Partnership (JETP) program.
The Role of China in Energy Transition
However, Wicaksono stated that the United States is not the only partner for Indonesia, as other countries like China, Japan, and Germany also tend to invest in green energy transition. Meanwhile, Donald Trump emphasized his country's massive exploration of fossil energy.
"Amidst the absence of the United States as a key actor in the energy transition and climate governance issues, the strongest actor is now China," said Wicaksono.
China has shown commitment to investing in renewable energy in Indonesia, through projects involving electric vehicles, with notes on its implementation.
Wicaksono believes Indonesia could still gain climate funding through BRICS' New Development Bank (NDB). "Indonesia should promote financing for renewable energy and holistic energy transitions," he said.
According to Wicaksono, the Indonesian government also needs to take bold stances and leverage the current geopolitical opportunities, albeit energy transition is inseparable from a number of socio-economic issues.
Shofwan Al Banna Choiruzzad, an International Relations Lecturer at the University of Indonesia, also said that China currently leads the renewable energy sector, unlike the United States, which is dominant in the oil sector.
However, Shofwan warned that the Indonesian government needs to enhance the resilience of climate agendas and energy transition to avoid dependence on a single major power. Partnerships should not only be with one country or one party to achieve that.
"We must strengthen multi-party and cross-national partnerships that are more sturdy and effective," he said in the same discussion.
The issue of renewable energy transition, Shofwan stated, is not only about environmental problems, but a strategic step to ensure long-term growth and sovereignty. Diversification of renewable energy will also protect Indonesia from the dynamics of fossil energy prices, which are heavily influenced by geopolitical turmoil.
The government, he said, should not delay renewable energy transitions and strengthen political will. "Strong and sustainable political will is the key to improving institutional systems and mobilizing funding," said Shofwan.
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