Indonesia's energy transition wind mouth, how the layout of Chinese enterprises to unlock green business opportunities?

The International Energy Agency recently reported that due to economic development, population growth and manufacturing expansion, Southeast Asia will become one of the key engines of global energy demand growth in the next 10 years, and by 2035 Southeast Asia will account for 25% of global energy demand growth. Indonesia is the largest economy in Southeast Asia and one of the world's major coal producers and exporters, and its coal and energy industry is leading the global market at an impressive The country's coal and energy industry is leading the global market with an astonishing growth rate, with the country's coal production reaching 836 million tons in 2024, exceeding the annual target of 710 million tons by 181 TP3T, and climbing to a new high in comparison to the historical peak of 775 million tons in 2023. As the world's largest power coal exporter, Indonesia's annual export volume exceeded 555 million tons mark, strong data once again proved the surging power of the "global energy engine".

Another point of concern is that in order to reduce the environmental pollution caused by traditional energy sources, in 2021 the Indonesian government put forward a national carbon neutral target to achieve net zero emissions by 2060. Energy transformation and potential mining for Chinese enterprises to create a wide range of investment opportunities, from clean coal technology upgrades, intelligent transformation of mines, to the development of photovoltaic wind power projects, energy storage system construction, the whole industry chain contains a huge blue ocean.

First, seize the energy industry to go overseas business opportunities, why Indonesia?

Indonesia is known as the "Tropical Treasure Island", and is uniquely endowed with resources, including abundant reserves of oil, natural gas, coal, nickel, tin, copper, gold, hydroelectric energy and geothermal energy. However, the energy structure shows a significant imbalance, with coal (40.46%), oil (30.18%), natural gas (16.28%) as the main source of energy, and clean energy accounts for only 13.09%. wind power, photovoltaic power and other renewable energy power generation in the structure of the electricity accounted for a relatively low proportion. Specifically:

On the one hand, Indonesia's non-renewable resources are extremely rich, especially coal resources, according to the "World Energy Statistics Yearbook 2023" data, Indonesia's proven coal reserves amounted to 34.869 billion tons, ranking No. 6 in the world, almost all of which is open-pit mining, of which 90% is distributed in Kalimantan and Sumatra two islands. With the advantage of mining costs, Indonesia has been ranked first in the global power coal exporters for many years, and the proportion of exports to the Asian market in 2023 amounted to 70%, mainly flowing to China, India, Japan and South Korea and other countries.

On the other hand, Indonesia's renewable energy development potential is huge, data show that Indonesia's geothermal resources account for the world's total reserves of 40%, solar energy annual radiation of 1,600-2,300 kWh / m², but the development of progress is seriously lagging behind, such as the utilization rate of geothermal energy is only 10%, the installed capacity of photovoltaic is not yet as much as the technically developable amount of 1%.

This "high carbon locked" energy pattern brings multiple challenges to Indonesia's development - coal supports more than 60% of the country's electricity supply, making Indonesia the largest carbon emitter in Southeast Asia, with energy-related CO2 emissions reaching 654 million tons in 2023, of which the power and industrial sectors account for 42% and 19%, respectively. In 2023, energy-related carbon dioxide emissions will reach 654 million tons, of which the power and industrial sectors will account for 421 TP3T and 191 TP3T, respectively.With the acceleration of the global energy transition, the over-reliance on coal not only faces the threat of international carbon tariffs, but also restricts the progress of its carbon neutrality goal, so the change of the energy structure is imminent.

II. Accelerating the transition, "breaking" and "building" the Indonesian energy revolution

In recent years, the Indonesian government has been gradually promoting energy transition, launching a series of policy combinations to reshape the national energy map, which involves the development of renewable energy, low-carbon transformation of traditional energy sources, industrial upgrading and international cooperation and other areas, in order to promote the energy transition goals to the ground to escort.

In 2020, the Mining Law and the export ban mandated the transition of mining resources from primary mining to high value-added processing, prohibiting the export of unprocessed nickel ore. Enterprises investing in nickel mining projects will be required to build smelters and battery material production lines on Indonesian soil. 2025 will see a further increase in regulations, with exporters required to lock up foreign exchange earnings in local banks for one year and an additional export tax of 151 TP3T.

In March 2021, a "priority list" for investment was introduced, removing or relaxing restrictions on foreign ownership in areas such as renewable energy, and in 2022 a presidential regulation was issued to accelerate the development of renewable energy in the electricity supply in order to attract more investors to participate in the development of geothermal resources.

In September 2022, it was announced that no new coal-fired power plants would be built, except for those included in planning and under construction, and that Pertamina would be required to accelerate the closure of its holdings of coal-fired power plants. Pertamina has proposed a roadmap for a phased exit from coal power, and the company is also preparing a carbon-neutral roadmap, with plans to make renewable energy power plants dominate the national power generation landscape by 2045, and to achieve 1,001 TP3T of clean energy generation by 2055-2060.

In 2022, a plan for expansion and innovation in the transmission and distribution system with an investment scale of up to US$3 billion was unveiled, and the country's grid infrastructure is expected to reach an investment scale of US$7 billion per year between 2030 and 2035, according to the development goals.

In December 2023, Indonesia released a Comprehensive Investment and Policy Plan (CIPP), which outlines detailed carbon reduction programs, priority projects, and financing mechanisms, and proposes to increase the share of renewable energy in power generation to 44% by 2030.Indonesia will also mobilize about US$20 billion in the next 3-5 years through international financing mechanisms to help achieve its energy transition goals. funds to help realize the energy transition goals.

In the field of new energy, the Indonesian government has also launched a lot of investment incentives, in addition to value-added tax reductions and subsidies for the purchase of vehicles, the electric vehicle industry in the investment "Priority List", as one of the industries encouraged to invest in investors can enjoy 100% sole proprietorships to set up enterprises, corporate income tax 100% exemption (if the investment amount of $35 million or more) or corporate income tax 50% exemption (if the investment amount of $7-35 million) and other preferential policies. Investors can enjoy preferential policies such as 100% for sole proprietorship establishment, 100% for corporate income tax exemption (if the investment amount reaches more than 35 million USD) or 50% for corporate income tax exemption (if the investment amount reaches 7-35 million USD). At the same time, Indonesia has transferred the licensing and approval functions of local governments to the central government and has streamlined the approval process through digital government.

Third, how do Chinese enterprises seize the new track of Indonesia's energy transformation?

Indonesia's coal resources are high in reserves and of high quality, with high moisture, low ash and low sulfur characteristics, which makes it highly competitive in the global market. At the same time, Indonesia's coal and energy industries are facing challenges in terms of mining and processing technology, environmental protection, and price fluctuations in the international market, etc. China is the world's largest coal producer and the most important export destination for Indonesian coal, and China and Indonesia have accumulated deep complementary experience in energy transformation. China is the world's largest coal producer and the most important export destination for Indonesian coal, and has accumulated rich experience in energy transformation, and China and Indonesia have formed deep complementarities in energy transformation.2023 In October 2023, the two sides issued a joint statement on deepening all-round strategic cooperation, emphasizing more high-quality cooperation in energy infrastructure and clean energy development key industries, opening up a new space for cooperation in the field of renewable energy between China and Indonesia. renewable energy sector.

▪ Coal deep-processing cooperation

China's coal deep processing field continues to innovate, such as gasification technology, clean coal technology and coal chemical technology, which significantly improves the efficiency of coal utilization, and can participate in coal chemical projects such as coal coking, gasification and other coal chemical projects in Indonesia, to further extend the coal chemical industry chain, and improve the added value of coal chemical products.

■ Intelligent Collaboration

China's coal industry has accelerated intelligent transformation, and intelligent capacity has accounted for more than 50% of total coal capacity. Chinese enterprises have obvious advantages in the clean and efficient utilization of coal, manufacturing of coal machinery and equipment, and intelligentization of coal mines, etc., and can carry out in-depth cooperation with Indonesia.

▪ Mining investment cooperation

Indonesia's coal, nickel, tin, copper, bauxite, gold and other resources reserves are among the world's top, such as nickel reserves accounted for the world's 40%-45%, Chinese enterprises can invest in the construction of factories and other ways to form an integrated industrial chain layout from nickel mining to lithium battery production.

▪ Cooperation in infrastructure development

Over the past 10 years since the implementation of the "Belt and Road" initiative, China's enterprises have developed rapidly in their overseas contracting business and accumulated leading infrastructure experience, which allows them to participate in Indonesia's photovoltaic, power generation, and integrated infrastructure construction projects by providing key equipment and logistics facilities.

Fourth, Indonesia International Coal Expo, how to empower China-Indonesia cooperation?

Based on its unique energy resource advantages, strong government support and continuous international cooperation, Indonesia's energy transition, though in its early stages, has begun to bear fruit, and has indicated that it will achieve net-zero emissions by 2050, 10 years ahead of schedule, making the energy transition one of the country's major engines of economic growth. In order to accelerate the energy revolution and further release the potential of the industry, under the full support of the Ministry of Energy and Minerals of Indonesia, the 2025 Indonesia International Coal and Energy Industry Expo and 2025 Indonesia International Coal Clean Utilization and Green Mining Conference will be kicked off soon, linking the top 100 coal merchants and head service providers in Indonesia, anchoring the direction of high-end, diversified, low-carbon transformation and upgrading, and building a new ecosystem of energy transformation together.

Accurate matching of technology needs.With the theme of "Clean Utilization of Coal and Green Mining", Coal Expo Indonesia focuses on the display of cutting-edge technologies, synergy of the whole industry chain and opportunities for cross-border cooperation, and builds an international platform for energy enterprises to integrate technology exchange, project docking and industrial upgrading, and focuses on presenting the latest technological achievements in the field of coal and energy, covering the sections of intelligent mining It focuses on presenting the latest technological achievements in the field of coal and energy, covering intelligent mining equipment, clean coal technology, new energy applications, etc., which will help Indonesia realize the goal of net-zero emissions.

Provide full chain solutions.In addition to the display and exchange of cutting-edge technology and cutting-edge equipment, the Indonesia International Coal Expo also builds a closed-loop docking platform of "technology display-scene adaptation-investment landing" through concurrent forums and enterprise roadshows. Domestic headline enterprises, such as Qinfa Group, Easy Control Intelligent Driving, China National Chemical Group, and China National Automobile Corporation (CNAC), gathered together to provide whole-chain low-carbon solutions, such as new energy, intelligent driving, coal chemical, and electric trucks in coal mining areas, for the energy transformation of Indonesia and Chinese enterprises going overseas. The company will bring the whole chain of low-carbon solutions such as SDE coal washing and mining new energy, intelligent driving, coal chemical industry, coal mining electric trucks, etc., which will provide replicable experience for Indonesia's energy transformation and Chinese enterprises going overseas.

Efficient promotion of industrial synergies and cooperation.In order to help Chinese and Indonesian enterprises deepen their understanding, during the preparatory stage of the exhibition, the organizing committee of Indonesia International Coal Expo organized domestic enterprises in the field of clean and efficient utilization of coal, coal machinery and equipment manufacturing and intellectualization to carry out a five-day research and investigation in Indonesia, visit local leading enterprises, docking with the India-China Business Council, Indonesia Mining Service Association, Indonesia Coal Mining Association, and hold a cooperation and docking meeting for Chinese and Indonesian coal machinery, mining machinery and parts. It also held China-Indonesia Coal Machinery, Mining Machinery and Components Cooperation Matchmaking Meeting and China-Indonesia Coal Supply Chain Cooperation Matchmaking Meeting to promote exchanges and cooperation between China and Indonesia in the field of coal and energy.

Through the "exhibition + meeting + inspection" trinity mode, Indonesia International Coal Expo 2025 will gather the top power of the coal and energy industry, injecting new potential for the transformation of Southeast Asia and even the global energy industry. 2025 May 15-17, we invite you to meet in Jakarta, grasp the opportunities for overseas investment, and explore the new energy transformation in Indonesia! We sincerely invite you to meet us in Jakarta on May 15-17, 2025 to grasp the opportunities of offshore investment and explore the new track of energy transformation in Indonesia!

2025印尼国际煤博会组委会
联系方式：+8613685001810 081110116323      邮箱：NIC@shixin-expo.com

[Early Spoilers: List of Exhibitors, Powerful Exhibits, Main Topics of the Forum ...... will bring you more hardcore information to unlock in the next issue!

Recognize the QR code to register for free admission