Indonesia's clean energy future is at the center of a supply struggle between the US and China

The race to replace coal in Indonesia, the world’s largest coal exporter, has become a contest between the U.S. and China. At stake is not only Indonesia’s climate future, but also which superpower sets the terms for the next generation of energy in the developing world.

Like much of the developing world, Indonesia faces a choice between two stark energy futures.

Chinese companies signed more than $54 billion in agreements in 2023 with Indonesian state utility PLN, while Indonesian President Prabowo Subianto’s 2024 Beijing visit added $10 billion in commitments. Chinese firms are now rapidly embedding themselves in Indonesia’s clean-energy supply chain, from solar and critical mineral mining to electric vehicles, also known as EVs.

These investments dwarf the $20 billion Just Energy Tra