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Industries urge govt to stay renewables course, despite US climate retreat
The HKI has urged the government to stay the course in Indonesia's energy transition, after certain members of the Prabowo administration made public statements questioning the relevance of the Paris Agreement following Trump's decision to withdraw US participation.
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A nickel smelter spews emissions into the air above Indonesia Weda Bay Industrial Park in Lelilef, North Maluku, on July 7, 2024. (AFP/Azzam Risqullah)
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ndustrial leaders are urging the government to keep developing renewable energy, regardless of growing uncertainty following the United States’ withdrawal from the Paris Agreement.
The Indonesian Industrial Estates Association (HKI) underlined that abandoning renewables would hurt Indonesia’s global competitiveness and deter foreign investors, which now demand green energy and sustainable supply chains.
“Our industrial parks must be globally competitive if we want to attract foreign direct investment [FDI],” HKI deputy chair Didik Prasetiyono said on Thursday, during the association’s national dialogue at the Industry Ministry.
“Green energy must be available. Just because [US President Donald] Trump has pulled out [of the Paris Agreement] doesn’t mean we should exit, too,” he added.
At the same event, HKI chairman Sanny Iskandar pointed out that many industrial parks in the country were struggling with regard to stable supplies of energy and water due to a lack of guaranteed quotas, which hampered expansion and investment.
Besides energy security, Sanny also stressed a need for bureaucratic streamlining, tax breaks, import duty relief and ease of licensing to maintain industrial estates’ competitiveness against regional peers.
On Jan. 28, the Trump administration formally notified the United Nations that the US would be withdrawing from the 2015 Paris Agreement, effective Jan. 27, 2026.
