Why is Indonesia strategically important?

Shipping’s energy transition: strategic opportunities in Indonesia


Indonesia’s nascent renewable energy potential could potentially allow Indonesia to take advantage of its unique position in south-east Asia to facilitate its sustainable development and growth, especially through the creation of maritime hubs for national green corridors targeting short-sea shipping. Indonesia can benefit from being a midstream center of import and export of zero-carbon fuels produced in other countries. Through the energy transition to SZEF, Indonesia can also benefit from the creation of many domestic green jobs in the renewable energy industry and shipbuilding.

With over 17,000 islands, Indonesia is intrinsically tied to the maritime industry, with many small vessels making up the domestic fleet, in addition to a high volume of international traffic passing through Indonesian waters. Maritime activities contribute massively to Indonesian society and the economy, with there being strong potential to leverage these activities to decarbonize other industrial activities and support wider economic development.

Indonesia’s renewable energy potential represents enough energy to meet the country’s domestic electricity demand, decarbonize local industries, as well as contribute to the decarbonization of domestic shipping. Moreover, should the country manage to cost-effectively access its large reserves of geothermal energy, Indonesia could also explore the opportunity to establish green hubs to bunker and possibly export SZEF where there is a surplus of renewable energy to do so.

The new P4G-Getting to Zero Coalition report “Shipping’s energy transition: strategic opportunities in Indonesia” explores the potential for Indonesia to accelerate and to benefit from international maritime decarbonization. The report finds that Indonesia has several opportunities to leverage the global transition to zero emission marine fuels towards key national objectives. However, achieving this will require targeted action in order to unlock these opportunities.

Read the report here.


This article is shared by courtesy of Global Maritime Forum – – The Global Maritime Forum is an international not-for-profit organization committed to shaping the future of global seaborne trade to increase sustainable long-term economic development and human wellbeing.

For more articles about the maritime industry in Asia, click here.

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