The fifth meeting of the Australia–Indonesia Energy Transition Policy Dialogue was held in Jakarta on 17 June 2025, co-convened by the Centre for Policy Development (CPD) and Climateworks Centre.
Now in its fourth year, the Dialogue has become a trusted forum for open, constructive discussion between Australian and Indonesian leaders across government, business, and civil society. It offers a unique space to tackle shared challenges, exchange practical insights, and strengthen cooperation on the journey to net zero.
This year’s Dialogue focused on key issues including industrial decarbonisation, the social and human aspects of a just transition, and new opportunities for bilateral collaboration. The discussions reflected a shared commitment to ensuring the energy transition is not only rapid and resilient – but also inclusive, equitable and enduring.
Recognising that heavy industry has been slower to decarbonise, the Dialogue’s first session explored how place-based approaches can help accelerate progress toward net zero. We were pleased to welcome Indonesian Vice Minister of Industry Faisol Riza to this session to share his reflections on priorities for decarbonisation.
Discussions focused on Australia’s experience with Net Zero Industrial Precincts (NZIPs) – geographic clusters that bring together industry, low-emissions energy, transport infrastructure, skilled workforces and zoned land to drive coordinated decarbonisation. Participants examined how this model could be adapted and applied in the Indonesian context to overcome barriers and foster collaboration across sectors.
While there was broad support for piloting similar initiatives in Indonesia, participants also raised important considerations around building social licence and ensuring meaningful engagement with local communities from the outset.
As both Australia and Indonesia navigate the shift to low-carbon economies, efforts to manage the social impacts of the transition have often focused on fossil fuel workers and affected regions. However, participants agreed that the transition will have far-reaching effects – touching all households, workforces and communities.
The session introduced a proposed framework to help identify and prioritise the social impacts of transition policies at every stage of project design and delivery. Participants discussed how this approach could ensure that people and communities remain central to decision-making – not just during job losses, but throughout the full lifecycle of change.
There was also a strong emphasis on the need to tailor transition plans to local contexts, with discussion on how the framework could be adapted for different regions and community realities.
Amid growing global uncertainty and retreat from climate commitments in some quarters, Australia and Indonesia are well positioned to demonstrate regional leadership on decarbonisation and climate action. Participants discussed where joint efforts could have the greatest impact, with a strong focus on embedding place-based decarbonisation approaches within existing bilateral initiatives.
Key opportunities identified included the KINETIK green infrastructure initiative and the Australia–Indonesia Memorandum of Understanding on electric vehicle (EV) supply chain cooperation. Both were seen as promising foundations for deeper collaboration and ideal platforms to pilot place-based solutions.
Participants also highlighted the importance of turning Indonesia’s Nationally Determined Contribution (NDC) into concrete policies and programs, and ensuring the implementation of Indonesia’s five-year development plan supports inclusive, sustainable growth. In both areas, Australian support and experience were seen as valuable inputs to help accelerate progress.
The Centre for Policy Development (CPD) is pleased to partner with Climateworks Centre to convene the Australia-Indonesia Energy Transition Policy Dialogue as part of CPD’s Australia in the Indo Pacific Program; building on years of work in sustainable economies and dialogues in the region.
The is an informal meeting of senior officials, regulators, business and non-government experts from Australia, Indonesia and the region. It supports formal policy development processes through roundtables, research and analysis. It hold no official status and participants attend in a personal capacity.
In line with CPD’s custom, meetings are conducted under the Chatham House Rule and on an invitation-only basis to ensure those involved can participate candidly.
