CELIOS launched the Indonesia-MENA Desk alongside its study “Looking Towards MENA: Alternative Investment Partners for Indonesia’s Energy Transition.” The report emphasizes the importance of seeking new financing partners amid shifts in global geopolitics. Donald Trump’s pro-fossil agenda, which could weaken international climate cooperation, as well as China’s dominance in financing coal-fired power plants (PLTUs) in Indonesia, show the risks of relying solely on longstanding partners in the clean energy transition.
The study highlights the Middle East and North Africa (MENA) region as a strategic alternative. Sovereign wealth funds such as PIF (Saudi Arabia) and ADIA (Abu Dhabi) are increasingly investing in renewable energy, technology, and infrastructure. Saudi Arabia’s Vision 2030 and the UAE’s Masdar initiative demonstrate MENA’s leadership in clean energy. If fully harnessed, investment from MENA could unlock thousands of trillions of rupiah in economic output and create millions of jobs, while also reducing emissions and health costs.
CELIOS emphasizes that diversifying energy partnerships is key to achieving the Net Zero 2060 target. Strengthening cooperation with MENA will help Indonesia reduce its dependence on the U.S. and China, while strengthening its position in the global renewable energy supply chain. “Indonesia must strategically balance its partnerships with China and MENA to ensure sustainable growth and avoid depending on a single investor,” said Muhammad Zulfikar Rakhmat, Director of CELIOS’s Indonesia-MENA Desk.
CELIOS has launched the Indonesia-MENA Desk along with its study “Looking Towards MENA: Alternative Investment Partners for Indonesia’s Energy Transition.” The report underscores the urgency of seeking new financing partners amid shifting global geopolitics. With Donald Trump’s pro-fossil fuel agenda potentially undermining international climate cooperation and China’s heavy financing of coal projects in Indonesia, relying on traditional partners poses risks for the country’s clean energy transition.
The study highlights the Middle East and North Africa (MENA) region as a strategic alternative. Gulf sovereign wealth funds such as Saudi Arabia’s PIF and Abu Dhabi’s ADIA have been diversifying into clean energy, technology, and infrastructure. Saudi Arabia’s Vision 2030 and the UAE’s Masdar initiative showcase MENA’s leadership in renewables, offering Indonesia not only investment capital but also long-term energy security. By tapping into MENA funding, Indonesia could unlock trillions in economic output and millions of new jobs while reducing emissions and health costs.
CELIOS stresses that diversifying energy partnerships is vital to achieving Net Zero by 2060. Strengthening ties with MENA would allow Indonesia to reduce dependence on the U.S. and China while positioning itself in the global renewable supply chain. “Indonesia must strategically balance partnerships with China and MENA to ensure sustainable growth and avoid overdependence on a single investor,” said Muhammad Zulfikar Rakhmat, Director of the Indonesia-MENA Desk at CELIOS.
CELIOS-MENA and Energy Transition 2025 Download
CELIOS-MENA Alternative Investment for Energy Transition 2025 Download