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Green industrial partnership as strategic narrative for advancing Indonesia’s diplomacy to support the acceleration of energy transition
This policy paper examines how the Ministry of Foreign Affairs (Kemlu) can implement its economic diplomacy mandates on energy transition more consistently and effectively, and identifies necessary internal institutional reforms. Despite considerable diplomatic engagement across multilateral and bilateral forums, established partnerships have not significantly accelerated Indonesia's domestic energy transition, as Kemlu's mandate remains clear on paper but systematically under-implemented in practice. The analysis identifies four converging dynamics: structural coal dependency of downstream industries, fragmented and reactive energy diplomacy narrative, Kemlu's internal institutional constraints, and Indonesia's underutilized leverage in the global green technology value chain. The paper recommends the Green Industrial Partnership (GIP) option with internal institutional reform, which reframes Indonesia from a funding-seeker into a strategic partner by linking critical mineral supply chain access to partner-country co-investment in renewable energy within Indonesia's downstream industrial zones. Implementation is sequenced across four quarters in Year 1, from internal consolidation and framework development to international engagement and scaling.
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