{"id":60095918,"date":"2025-08-27T12:50:19","date_gmt":"2025-08-27T11:50:19","guid":{"rendered":"https:\/\/dialogue.earth\/?p=60095918"},"modified":"2025-09-09T18:11:09","modified_gmt":"2025-09-09T17:11:09","slug":"chinese-energy-projects-take-off-in-indonesia-as-western-financing-falters","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/energy\/chinese-energy-projects-take-off-in-indonesia-as-western-financing-falters\/","title":{"rendered":"Chinese energy projects take off in Indonesia as western financing falters"},"content":{"rendered":"\n<p>To help Indonesia shift away from coal, an international group of western countries, along with Japan, launched the <a href=\"https:\/\/id.usembassy.gov\/united-states-supports-the-launch-of-the-just-energy-transition-partnership-jetp-in-indonesia\/\">Just Energy Transition Partnership (JETP)<\/a> in 2022. Their pledge totalled USD 20 billion in grants, soft loans and private finance. Of this only USD 1.2 billion has so far been <a href=\"https:\/\/portfolio.jetp-id.org\/\">mobilised<\/a>.<\/p>\n\n\n\n<p>The United States, an early driver of the JETP, <a href=\"https:\/\/www.thejakartapost.com\/business\/2025\/02\/01\/us-backs-out-from-jetp-leadership-role.html\">quietly withdrew<\/a> in March 2025, leaving Germany and Japan to take over coordination.<\/p>\n\n\n\n<div class=\"wp-block-cd-accordion block--accordion\"><span class=\"block--accordion__title\">Just Energy Transition Partnerships (JETP)<\/span><div class=\"block--accordion__content\"><div class=\"block--accordion__content__inner\">\n<p>These finance agreements support developing countries in transitioning to cleaner energy sources and are primarily shaped to be as equitable as possible. <\/p>\n\n\n\n<p>The funding is provided by a group of countries initially comprised of Canada, Denmark, France, Germany, Italy, Japan, Norway, the Netherlands, the United Kingdom and the US.<\/p>\n\n\n\n<p>The first JETP was announced at COP26 in 2021 and was dedicated to&nbsp;<a href=\"https:\/\/www.climatecommission.org.za\/south-africas-jet-ip\">South Africa<\/a>. Since then,&nbsp;<a href=\"https:\/\/jetp-id.org\/\">Indonesia<\/a>,&nbsp;<a href=\"https:\/\/jetp.dcc.gov.vn\/en\/Introduction\">Vietnam<\/a>&nbsp;and&nbsp;<a href=\"https:\/\/ec.europa.eu\/commission\/presscorner\/detail\/en\/ip_23_3448\">Senegal<\/a>&nbsp;have also established Just Energy Transition Partnerships.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<p>At the same time, Chinese companies have been expanding their involvement across Indonesia\u2019s green-energy value chain. From solar and hydropower projects to electric vehicle (EV) assembly, these projects are often backed by state financing and rapid timelines.<\/p>\n\n\n\n<p>Their growing presence has become a defining feature at a time when the country\u2019s western partners struggle to deliver on promises.<\/p>\n\n\n\n<p>According to a <a href=\"https:\/\/seamap.lowyinstitute.org\/analysis\/2025\/key-findings\/\">report<\/a> released last month by the Lowy Institute, western pledges to support Southeast Asia\u2019s clean-energy transition \u201chave yet to translate into more projects on the ground\u201d. And as western development support recedes, \u201cChina\u2019s relative importance as a development actor in the region will rise\u201d, it noted.<\/p>\n\n\n\n<a class=\"wp-block-cd-related-news alignright block--related-news loading\" data-post-id=\"60093657\"><div class=\"block--related-news__image\"><\/div><div class=\"block--related-news__content\"><span class=\"block--related-news__heading\">Recommended<\/span><span class=\"block--related-news__title\"><\/span><\/div><\/a>\n\n\n\n<p>The country\u2019s development financing for Southeast Asia grew by USD 1.6 billion in 2022-2023, reaching USD 4.9 billion, the report added. Much of that went toward major infrastructure projects such as high-speed rail in Indonesia and Malaysia. Total Chinese infrastructure commitments in the region nearly quadrupled in just a year, to almost USD 10 billion in 2023.<\/p>\n\n\n\n<p>Meanwhile, aid reductions by the US, EU and UK could shrink official development finance to the region by more than USD 2 billion, bringing it to about USD 26.5 billion by 2026, according to the report.<\/p>\n\n\n\n<p>China was the largest single-country provider of development financing to Indonesia in 2022 and 2023, hovering at around 10% of the total, it noted. But as the country increases its involvement in Indonesian projects, experts warn the quick pace of conducting business could potentially come with weakened oversight and environmental safeguarding.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-china-takes-pole-position-in-indonesian-energy\">China takes pole position in Indonesian energy<\/h2>\n\n\n\n<p>In 2023, Chinese companies, including the State Grid Corporation of China, Trina Solar and several banks and energy firms, signed <a href=\"https:\/\/en.antaranews.com\/news\/296592\/pln-nine-chinese-firms-ink-mous-on-renewable-energy-development\">memoranda of understanding<\/a> worth an estimated USD 54 billion with Indonesia\u2019s state-owned power company PLN. The deals cover renewables projects and smart grid development. During President Prabowo Subianto\u2019s 2024 visit to China, companies from the two countries signed investment <a href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/china-indonesia-enhance-ties-with-key-deals-lithium-green-energy-tourism-2024-11-10\/\">agreements<\/a> worth USD 10 billion.<\/p>\n\n\n\n<p>Beijing is also playing a key role in helping Indonesia achieve its ambition to become Southeast Asia\u2019s EV manufacturing hub.<\/p>\n\n\n\n<p>Chinese automakers including <a href=\"https:\/\/www.bkpm.go.id\/id\/info\/siaran-pers\/percepat-investasi-ekosistem-mobil-listrik-menteri-rosan-temui-sejumlah-perusahaan-raksasa-tiongkok\">BYD<\/a> and <a href=\"https:\/\/english.news.cn\/20220808\/d131c518c87f4f20a4b23037fe004fb0\/c.html\">SGMW<\/a> \u2013 a joint venture between China\u2019s SAIC Motor, General Motors and Guangxi Auto \u2013 have set up EV manufacturing operations, supporting the government\u2019s <a href=\"https:\/\/indonesiabusinesspost.com\/1838\/investment-and-risk\/indonesia-aims-to-produce-electric-vehicles-by-2024-targeting-600000-units-by-2030\">target<\/a> of producing 600,000 EVs annually by 2030.<\/p>\n\n\n\n<div class=\"wp-block-cd-article-image aligncenter block--article-image block--article-image--article\" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><div class=\"block--article-image__column\"><div class=\"hide-expand block--article-image__image\"><img class=\"lazy\" data-src=\"https:\/\/dialogue.earth\/content\/uploads\/2025\/08\/Wuling-Indonesia-factory_Li-Zhiquan_China-News-Service_Alamy_2YP1BHW.jpg\" data-srcset=\"https:\/\/dialogue.earth\/content\/uploads\/2025\/08\/Wuling-Indonesia-factory_Li-Zhiquan_China-News-Service_Alamy_2YP1BHW-768x512.jpg 768w, https:\/\/dialogue.earth\/content\/uploads\/2025\/08\/Wuling-Indonesia-factory_Li-Zhiquan_China-News-Service_Alamy_2YP1BHW-1024x683.jpg 1024w, https:\/\/dialogue.earth\/content\/uploads\/2025\/08\/Wuling-Indonesia-factory_Li-Zhiquan_China-News-Service_Alamy_2YP1BHW.jpg 2560w\" data-sizes=\"(max-width: 600px) 768px, (max-width: 1024px) 1024px, 2560px\" alt=\"A man stands beside a car on an assembly line\"\/><\/div><div class=\"block--article-image__content\"><div itemprop=\"caption\" class=\"block--article-image__caption\">Producing electric vehicles in Cikarang, West Java, at a factory run by a subsidiary of Chinese car marker SGMW (Image: Li Zhiquan \/ China News Service \/ Alamy)<\/div><\/div><\/div><meta itemprop=\"contentUrl\" content=\"https:\/\/dialogue.earth\/content\/uploads\/2025\/08\/Wuling-Indonesia-factory_Li-Zhiquan_China-News-Service_Alamy_2YP1BHW.jpg\"\/><meta itemprop=\"contentSize\" content=\"1 MB\"\/><meta itemprop=\"height\" content=\"1707\"\/><meta itemprop=\"width\" content=\"2560\"\/><meta itemprop=\"author\"\/><meta itemprop=\"representativeOfPage\" content=\"true\"\/><\/div>\n\n\n\n<p>BYD is currently building a USD 1 billion factory in West Java. Its capacity will be 150,000 EVs per year and production is <a href=\"https:\/\/www.ft.com\/content\/ea5985a7-ecc0-41fe-bf7e-6493b1bdec33\">expected<\/a> to begin in January 2026. SGMW opened its Cikarang factory in 2017, initially producing conventional vehicles before adding EVs in 2022.&nbsp;<\/p>\n\n\n\n<p>Indonesia\u2019s minister for energy and natural resources, Bahlil Lahadalia,&nbsp;<a href=\"https:\/\/gatrik.esdm.go.id\/berita\/?slug=gelar-forum-kemitraan-indonesia-tiongkok-menteri-esdm-dorong-stabilitas-investasi-energi&amp;category=\">reiterated<\/a> Jakarta\u2019s commitment to Chinese engagement in September 2024, offering major \u201cgreen investment opportunities including planned hydropower projects of 13,000\u202fmegawatts (MW) in Borneo and 24,000\u202fMW in Papua. \u201cThis is a potential we offer to China for collaboration. We cannot do this alone,\u201d he said.<\/p>\n\n\n\n<p>A recent development came in June, when Chinese solar giant LONGi <a href=\"https:\/\/www.antaranews.com\/berita\/4920965\/pertamina-nre-dan-longi-luncurkan-proyek-manufaktur-modul-panel-surya\">launched<\/a> a project to build a photovoltaic-panel factory near Jakarta, with a capacity of 1.4 gigawatts per year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-jetp-struggles-to-gain-momentum-nbsp\">JETP struggles to gain momentum &nbsp;<\/h2>\n\n\n\n<p>When launched in 2022, the JETP aimed to <a href=\"https:\/\/web.pln.co.id\/pln-jetp\/jetp-home#:~:text=Peaking%20total%20power%20sector%20emissions,ECONOMY%20AND%20DRIVE%20SUSTAINABLE%20DEVELOPMENT.\">help<\/a> Indonesia peak power-sector emissions and boost renewable energy to 34% of electricity generation by 2030.<\/p>\n\n\n\n<p>But the initiative has struggled to gain momentum amid a series of <a href=\"https:\/\/www.reccessary.com\/en\/news\/concerns-arise-as-indonesia-jetp-progresses-slowly-coal-transition\">delays<\/a>, hampered by slow bureaucratic processes and shifting political priorities within the Indonesian government and donor countries, officials and experts said.<\/p>\n\n\n\n<p>The US has also since <a href=\"https:\/\/www.whitehouse.gov\/briefings-statements\/2025\/01\/president-trumps-america-first-priorities\/\">reprioritised<\/a> its energy policy, reallocating funding to programmes aligned with its \u201cAmerica First\u201d stance. Meanwhile, the Prabowo administration appears to favour a strategy that retrofits existing coal plants using <a href=\"https:\/\/www.mpr.go.id\/berita\/Waka-MPR-Audiensi-dengan-PLN-Nusantara-Power,-IBAS:-Co-Firing-Biomassa-Solusi-Energi-Bersih-dan-Ekonomi-Baru\">biomass<\/a>, <a href=\"https:\/\/ebtke.esdm.go.id\/artikel\/berita\/pemerintah-dukung-inisiatif-co-firing-amonia-di-pltu-labuan\">ammonia<\/a> or <a href=\"https:\/\/www.cnbcindonesia.com\/news\/20250605103226-4-638764\/prabowo-siapkan-payung-hukum-baru-pembangunan-nuklir\">nuclear<\/a> conversions. Under Prabowo, Indonesia has signalled an intent to deepen South-South <a href=\"https:\/\/setkab.go.id\/presiden-prabowo-dorong-brics-jadi-motor-kerja-sama-ekonomi-selatan-global\/\">cooperation<\/a>. This is in line with the administration\u2019s broader <a href=\"https:\/\/en.antaranews.com\/news\/360813\/in-russia-prabowo-reaffirms-indonesias-non-aligned-stance\">non-aligned<\/a> economic and diplomatic posture.<\/p>\n\n\n\n<p>Hashim Djojohadikusumo, Indonesia\u2019s special presidential envoy for climate and energy, strongly criticised JETP, calling it a \u201c<a href=\"https:\/\/environews.asia\/hashim-calls-jetp-a-failed-program\/\">failed program<\/a>\u201d. Hashim, who is Prabowo\u2019s brother, said earlier this year that \u201c<a href=\"https:\/\/www.youtube.com\/watch?v=iQmEpIR_TUE\">not a single dollar has been disbursed by the US government<\/a>\u201d. He added that the USD 20 billion commitment was \u201cjust empty talk\u201d and should not be relied upon.<\/p>\n\n\n\n<a class=\"wp-block-cd-related-news alignright block--related-news loading\" data-post-id=\"60084058\"><div class=\"block--related-news__image\"><\/div><div class=\"block--related-news__content\"><span class=\"block--related-news__heading\">Recommended<\/span><span class=\"block--related-news__title\"><\/span><\/div><\/a>\n\n\n\n<p>\u201cJETP is crucial for reaching our net-zero emissions target and boosting renewable energy\u2019s share,\u201d said Agus Puji Prasetyono, a university lecturer and member of Indonesia\u2019s National Energy Council, which designs national energy policy. \u201cBut actual implementation has been slow. Bureaucratic bottlenecks, limited funding and underdeveloped regulations continue to hamper progress.\u201d<\/p>\n\n\n\n<p>Experts say the situation worsened when the US withdrew. \u201cAlthough Germany and Japan have stepped in to lead coordination, the Indonesian government\u2019s internal commitment has also weakened,\u201d said Fabby Tumiwa, executive director of the Institute for Essential Services Reform (IESR).<\/p>\n\n\n\n<p>The government has become increasingly frustrated with the complex structure of the JETP, which involves multiple layers of working groups, secretariats and donor-country parliamentary approvals, noted Bhima Yudhistira, director of the Center of Economic and Law Studies (Celios).<\/p>\n\n\n\n<p>Additionally, a portion of JETP financing is concessional and could add to Indonesia\u2019s <a href=\"https:\/\/jetp-id.org\/about\/will-jetp-financing-pose-a-new-debt-burden-to-indonesia\">debt burden<\/a>. \u201cIf the funding ultimately comes as debt, officials question why they shouldn\u2019t just go straight to the World Bank or [Asian Development Bank],\u201d he said.<\/p>\n\n\n\n<p>Consequently, \u201cwe\u2019re seeing less ownership and declining enthusiasm from key institutions like the Ministry of Energy and Mineral Resources\u201d, Fabby said.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-china-s-rapid-pace\">China\u2019s rapid pace<\/h2>\n\n\n\n<p>The simultaneous increase in Chinese clean energy and tech investment has, in contrast, taken place quickly.<\/p>\n\n\n\n<p>Unlike the JETP, which emphasises governance reforms, transparency and concessional funding, China\u2019s approach to Indonesia\u2019s energy transition is primarily commercial, and significantly faster, said Putra&nbsp;Adhiguna, managing director of the Jakarta-based energy finance non-profit, Energy Shift Institute.<\/p>\n\n\n\n<p>\u201cWestern institutions might spend years completing feasibility studies and assessments. By then, a Chinese investor could already be halfway through construction,\u201d he explained.<\/p>\n\n\n\n<p>And whereas JETP includes safeguards and transparency requirements, many Chinese deals are shrouded in secrecy, said Yudhistira. \u201cEverything is [done] behind closed doors, but many of the projects are actually moving forward.\u201d<\/p>\n\n\n\n<p>He added: \u201cIf asked to choose, the government clearly leans toward China. They see action, not just meetings and paperwork.\u201d<\/p>\n\n\n\n<a class=\"wp-block-cd-related-news alignright block--related-news loading\" data-post-id=\"60087301\"><div class=\"block--related-news__image\"><\/div><div class=\"block--related-news__content\"><span class=\"block--related-news__heading\">Recommended<\/span><span class=\"block--related-news__title\"><\/span><\/div><\/a>\n\n\n\n<p>Adhiguna noted that the JETP has also been hampered by bureaucratic fragmentation and internal hesitations. \u201cThe government and PLN have yet to implement many of the planned projects,\u201d he said. \u201cThere\u2019s also tension over donor funds potentially being used to buy Chinese technology, which may not sit well with the donor countries.\u201d<\/p>\n\n\n\n<p>Paul Butarbutar, who heads Indonesia\u2019s JETP Secretariat, highlighted that the partnership has <a href=\"https:\/\/portfolio.jetp-id.org\/\">mobilised<\/a> nearly&nbsp;USD 1.25 billion&nbsp;in grants and concessional financing for solar and geothermal plants and new transmission lines, with support from various countries and private institutions such as international commercial banks. \u201cThe main challenge is the limited number of projects ready for financing,\u201d Butarbutar told Dialogue Earth.<\/p>\n\n\n\n<p>He also pointed out that the US continues to support a&nbsp;USD 2 billion World Bank loan <a href=\"https:\/\/ieefa.org\/resources\/financing-jetp-making-sense-packages\">guarantee<\/a>, and that its Development Finance Corporation remains interested in investments if Indonesia can offer viable projects.<\/p>\n\n\n\n<div class=\"wp-block-cd-article-image aligncenter block--article-image block--article-image--article\" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><div class=\"block--article-image__column\"><div class=\"hide-expand block--article-image__image\"><img class=\"lazy\" data-src=\"https:\/\/dialogue.earth\/content\/uploads\/2025\/08\/Indonesian-President-Prabowo-Subianto-attends-a-groundbreaking-ceremony-for-a-major-EV-battery-megaproject_3BNF4NN-.jpg\" data-srcset=\"https:\/\/dialogue.earth\/content\/uploads\/2025\/08\/Indonesian-President-Prabowo-Subianto-attends-a-groundbreaking-ceremony-for-a-major-EV-battery-megaproject_3BNF4NN--768x512.jpg 768w, https:\/\/dialogue.earth\/content\/uploads\/2025\/08\/Indonesian-President-Prabowo-Subianto-attends-a-groundbreaking-ceremony-for-a-major-EV-battery-megaproject_3BNF4NN--1024x683.jpg 1024w, https:\/\/dialogue.earth\/content\/uploads\/2025\/08\/Indonesian-President-Prabowo-Subianto-attends-a-groundbreaking-ceremony-for-a-major-EV-battery-megaproject_3BNF4NN-.jpg 2560w\" data-sizes=\"(max-width: 600px) 768px, (max-width: 1024px) 1024px, 2560px\" alt=\"Indonesian President Prabowo Subianto attends a groundbreaking ceremony \"\/><\/div><div class=\"block--article-image__content\"><div itemprop=\"caption\" class=\"block--article-image__caption\">Indonesian President Prabowo (centre) attends a groundbreaking ceremony for a major EV battery project in Karawang, West Java, on 29 June 2025 (Image: Zulkarnain \/ Xinhua \/ Alamy)<\/div><\/div><\/div><meta itemprop=\"contentUrl\" content=\"https:\/\/dialogue.earth\/content\/uploads\/2025\/08\/Indonesian-President-Prabowo-Subianto-attends-a-groundbreaking-ceremony-for-a-major-EV-battery-megaproject_3BNF4NN-.jpg\"\/><meta itemprop=\"contentSize\" content=\"1 MB\"\/><meta itemprop=\"height\" content=\"1707\"\/><meta itemprop=\"width\" content=\"2560\"\/><meta itemprop=\"author\"\/><meta itemprop=\"representativeOfPage\" content=\"true\"\/><\/div>\n\n\n\n<p>But he noted that the opportunities are open to any interested party, saying that gigawatts of renewable energy potential still need to be developed. \u201cThat\u2019s open to any investor, and China is well-positioned to participate,\u201d Butarbutar said.<\/p>\n\n\n\n<p>China sees Indonesia as a \u201cstrategic location\u201d in which to manufacture products for further trade, he noted. \u201cFor example, selling solar modules directly to the US is complicated due to trade restrictions. But producing them in Indonesia opens up new markets.\u201d <strong><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-environmental-and-human-costs\">The environmental and human costs<\/h2>\n\n\n\n<p>Yet critics say this \u201cgreen industrialisation\u201d narrative comes with costs.<\/p>\n\n\n\n<p>China\u2019s speed of working on projects increases the risk of weakened oversight and diluted environmental safeguards, said Adhiguna of the Energy Shift Institute.<\/p>\n\n\n\n<p>The country\u2019s overseas investments largely follow the regulatory environment of the recipient country, many of which are developing economies. \u201cMany of these problems stem from weak host country standards,\u201d he said.<\/p>\n\n\n\n<a class=\"wp-block-cd-related-news alignright block--related-news loading\" data-post-id=\"60063809\"><div class=\"block--related-news__image\"><\/div><div class=\"block--related-news__content\"><span class=\"block--related-news__heading\">Recommended<\/span><span class=\"block--related-news__title\"><\/span><\/div><\/a>\n\n\n\n<p>Take the nickel industry in Indonesia, which is the world\u2019s <a href=\"https:\/\/valorinternational.globo.com\/business\/news\/2025\/07\/09\/how-indonesia-became-the-worlds-nickel-powerhouse.ghtml\">largest<\/a> producer of the mineral. Approximately <a href=\"https:\/\/www.ft.com\/content\/0f8e2fe8-c7cb-4d6a-9436-1cb1806af4e0\">80%<\/a> of nickel-processing investments in the country are totally or majority Chinese-owned.<\/p>\n\n\n\n<p>Nickel is an important component in <a href=\"https:\/\/www.iea.org\/reports\/global-ev-outlook-2023\/trends-in-batteries\">60%<\/a> of the world\u2019s EV batteries but in Indonesia, nickel smelters are often <a href=\"https:\/\/www.business-humanrights.org\/en\/latest-news\/indonesia-china-backed-captive-coal-power-industry-pose-challenge-to-govts-green-energy-goals\/\">powered<\/a> by captive coal-fired power plants, producing significant air pollution and carbon emissions. Nickel mining such as in Morowali, near the site of the Indonesia Morowali Industrial Park (IMIP) \u2013 of which Chinese company <a href=\"https:\/\/china.aiddata.org\/projects\/66200\/\">Tsingshan<\/a> is a major shareholder \u2013 has been known to cause <a href=\"https:\/\/globalvoices.org\/2025\/04\/07\/how-chinas-investment-in-indonesias-nickel-industry-is-impacting-local-communities\/\">health problems<\/a> in nearby communities and has been fined for environmental <a href=\"https:\/\/www.reuters.com\/sustainability\/climate-energy\/indonesia-finds-environmental-violations-morowali-nickel-hub-2025-06-18\/\">violations<\/a>. A study by the Centre for Research on Energy and Clean Air and Celios released last year <a href=\"https:\/\/celios.co.id\/celios-x-crea-economic-and-health-impact-of-nickel-processing-industry\/\">identified<\/a> severe public health risks linked to air pollution from nickel smelters, with air pollution projected to cause over 3,800 premature deaths in 2025 and nearly 5,000 in 2030.<\/p>\n\n\n\n<p>Indonesia\u2019s <a href=\"https:\/\/energyshift.institute\/wp-content\/uploads\/2024\/02\/Energy-Shift_Indonesia-nickel-and-battery_Feb2024.pdf\">currently low<\/a> EV battery-manufacturing capacity\u00a0is set to expand significantly as Chinese companies have <a href=\"https:\/\/www.lowyinstitute.org\/publications\/future-indonesia-s-green-industrial-policy\">recently developed<\/a> high pressure acid leaching (HPAL) smelters. These can more easily refine Indonesian nickel, which is typically of a lower quality, into a grade suitable for use in EV batteries. Last month, Chinese EV battery company CATL <a href=\"https:\/\/www.reccessary.com\/en\/news\/catl-breaks-ground-new-battery-plant-indonesia\">broke ground<\/a> on a USD 5.9 billion nickel battery plant in West Java, which has <a href=\"https:\/\/www.france24.com\/en\/live-news\/20250626-environment-fears-over-6-bn-indonesia-ev-battery-project-ngos\">raised<\/a> environmental concerns.<\/p>\n\n\n\n<p>Prasetyono of Indonesia\u2019s National Energy Council defended the country\u2019s strategy, insisting that Chinese investment is subject to national standards and oversight. \u201cYes, there are challenges,\u201d he said. \u201cBut we\u2019re improving transparency and enforcing environmental and labour regulations.\u201d<\/p>\n\n\n\n<p>Adhiguna of the Energy Shift Institute said China must take greater responsibility as a global development actor.<\/p>\n\n\n\n<p>\u201cGoing forward, China should help raise the bar for overseas investment governance,\u201d he said. \u201cIt doesn\u2019t have to copy western frameworks exactly, but it must do better.\u201d<\/p>\n\n\n\n<p><em>Correction note: This article was updated on 9 September to correct the percentage of batteries for which nickel is an important component globally, and a statement that CATL\u2019s battery factory in West Java is sited near the Indonesia Morowali Industrial Park<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With Chinese companies sidestepping red tape of energy-transition projects financed by the west, experts are calling for stricter environmental safeguarding<\/p>\n","protected":false},"author":50000829,"featured_media":60095989,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[757,50039900],"tags":[510,17073,566,585],"hashtags":[],"country":[20000110,50040717],"class_list":["post-60095918","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","category-justice","tag-china-in-the-world","tag-energy-transition","tag-mining","tag-renewables","country-china","country-indonesia"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v26.0) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Chinese energy projects take off in Indonesia as western financing falters | Dialogue Earth<\/title>\n<meta name=\"description\" content=\"With Chinese companies sidestepping red tape of energy-transition projects financed by the west, 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