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New Energy World magazine logo
New Energy World magazine logo
ISSN 2753-7757 (Online)

Indonesia builds toward the energy transition

12/3/2025

8 min read

Feature

Ten-plus high-rise residential blocks and road infrastructure under construction Photo: Ministry of Housing and Residential Areas of the Republic of Indonesia
Indonesia is building a new city, Nusantara in east Borneo, which when complete will become the country’s new capital city (currently Jakarta, on the island of Java) – pictured are residential blocks under construction for government workers

Photo: Ministry of Housing and Residential Areas of the Republic of Indonesia

South-east Asia is being reshaped in terms of the energy transition, faced with US President Trump’s proposed tariffs on Chinese and ASEAN (Association of South East Asian Nations) imports. Dr Nuki Agya Utama, Head of Asia Zero Emission Centre, Economic Research Institute for ASEAN and East Asia, looks at the implications for Indonesia in particular.

President Trump’s proposed tariffs – 60% on Chinese imports and 10% on goods from other regions, including Europe and South-east Asia – are poised to disrupt supply chains and create profound economic realignments. These policies could fundamentally alter the global industrial landscape.

 

South-east Asia, and Indonesia in particular, stands at a critical juncture to capitalise on this shift. With the right strategies and investments in infrastructure, energy and workforce development, Indonesia could potentially secure its place as a global manufacturing hub, driving robust economic growth and achieving prosperity under Indonesian President Prabowo Subianto’s leadership.

 

South-east Asia is well-positioned to benefit from these global realignments. As companies look to relocate supply chains away from China to avoid US tariffs, ASEAN nations such as Vietnam, Thailand and Indonesia are becoming increasingly attractive destinations, with competitive labour costs, improving infrastructure and strategic geographical advantages.

 

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