ABSTRACT
Rising China has motivated leaders in developing countries to invite China to help them realize ambitious electricity programs, despite their lagging behind in investments in power projects in foreign countries. This paper aims to investigate the role of China in developing coal- and renewable energy-sourced electricity plants in Indonesia. The energy security framework was applied to understand energy transition. The dimension of availability and affordability indicates that Chinese investments in the expansion of steam coal capacity have significantly increased Indonesia’s national electricity capacity and brought financial benefits to the government. Although the associated increases in carbon emissions have hampered the achievement of emissions reduction targets, Chinese exports of solar PV components have enabled growth in renewable energy, giving hope to the sustainability dimension. From the governance dimension, China’s risk-taking attitude can be a double-edged sword. It could open up opportunities for China to become more intensively involved in energy development in host countries, but, at the same time, could reduce prudence in realizing good governance. In total, China’s involvement in the development of power plants has further exacerbated Indonesia’s position in efforts to reduce carbon emissions and presents a major challenge for strengthening and developing good practices that business actors need to encourage.
