Indonesia, Cambodia Ink Energy Deal
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- June 30, 2025
In recent years, the dynamic of energy and mineral cooperation between Indonesia and Cambodia has gained significant momentumThe Indonesian Ambassador to Cambodia, Santo Damasumarto, held discussions with the Cambodian Minister of Mines and Energy, Sok Khavan, where he reaffirmed Indonesia's commitment to playing an active role in the development of renewable energy in CambodiaThey specifically mentioned areas such as hydroelectric power and solar energy, highlighting the immense potential for collaboration between the two nations in tackling climate change and reducing carbon emissionsBoth sides underscored their shared resolve to enhance mineral cooperation as part of a sustainable development agenda.
Indonesia, on one hand, has urged developed countries to fulfill their promises of assisting developing nations in combating climate changeThe focus has been on establishing equal, collaborative, and inclusive partnerships that enable more countries to participate in global supply chains, ultimately fostering fairness and mutual gains, while also addressing monopolistic controlSimultaneously, Indonesia is actively seeking energy and mineral cooperation within the Global South, aiming to facilitate energy transitions and sustainable developmentThis intersection of interests marks a pivotal shift in how Indonesia engages with its neighbors and partners.
Last year, initiatives to strengthen energy and mineral cooperation were discussed with numerous countries across Africa, Latin America, the Middle East, and South AsiaDuring Indonesia’s tenure as ASEAN Chair, there was an active push to enhance regional energy transitions through efforts such as developing an ASEAN power grid and establishing a unified electric vehicle ecosystemRecently, on July 15, 2023, Indonesia commenced electrical exports to Papua New Guinea, reflecting a desire for mutual engagement in the renewable energy sectorPapua New Guinea’s Prime Minister James Marape expressed hopes for increased collaboration in this thriving area, underscoring the potential for Papua New Guinea to become a significant exporter of clean energy to Indonesia.
Recently, Indonesia's Deputy Foreign Minister Pahala Mansury remarked on the need for developed nations, including the United States, to invest in countries rich in critical mineral resources to mitigate supply chain risks
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This perspective aligns with the growing recognition of essential commodities as the new geopolitical 'oil.' Disruptions in global supply chain production affect everyone, and as nations worldwide transition towards renewable energy, it has become crucial for developed countries to adapt their priorities in light of shifting geopolitical and economic landscapesThis presents a unique opportunity for countries historically colonized for their natural resources to establish resilient supply chains today.
Cambodia's energy sector faces significant challenges including limited electricity access in rural areas, dependency on imported energy, and underdeveloped infrastructureThe majority of Cambodia's electricity generation comes from hydropower, which is highly susceptible to fluctuations in water levels and climate changeThis has led to rising energy prices that inhibit industrial growth and constrain economic developmentIn 2022, data indicated that solar power accounted for 6.7% of the total electricity generation, while coal and oil contributed 38.9% and hydropower accounted for 53.9%. As of January 2023, a staggering 59% of Cambodia's electricity needs were met through imports, with electricity from neighboring countries constituting 33%, and coal or oil-generated imported electricity comprising 25.6%. This reliance highlights the urgent need for diversifying the country's energy sources.
To address such challenges, harnessing renewable resources emerges as a promising pathway for sustainable developmentThe Cambodian power development plan established in 2022 identified three key goals: providing reliable and affordable electricity across all sectors, reducing dependence on energy imports while maximizing domestic resource utilization, and increasing the share of clean energy in the energy mixThese commitments reflect a clear roadmap for the country's energy strategy moving forward.
Researcher Mupni from Indonesia's National Innovation Agency has noted that Cambodia indeed boasts substantial clean energy potential, with its diverse renewable resources including solar, wind, biomass, and hydroelectric power yet to be fully tapped
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