Indonesia is turning to China for a major expansion of solar power and energy storage, but a new report warns that a multibillion-dollar funding gap and demands for greater domestic control will complicate the plan as the country’s energy ties deepen.
The report, published on Monday by the Jakarta-based Centre of Economic and Law Studies (Celios), found that Chinese investment in Indonesia’s energy sector was expanding beyond nickel processing and electric-vehicle battery production, which had dominated cooperation under former president Joko Widodo.
It comes as Indonesian President Prabowo Subianto has sought to curb reliance on foreign technology and secure greater benefits for domestic manufacturers, raising questions about how the two countries will manage the next phase of their energy partnership.