Energy as an Instrument of Indonesian Diplomacy in the Multipolar Era

In recent years, the global geopolitical landscape has changed far more rapidly than in the previous decade. Competition between states no longer takes place solely through military might or trade dominance.

Energy has now become one of the most decisive instruments for building influence, expanding cooperation, and safeguarding national interests. A country able to manage energy strategically gains not only economic benefits but also wider room for diplomacy in an increasingly multipolar world.

This shift is evident in the intensifying competition for access to critical minerals, clean energy technology, manufacturing supply chains, and the development of cross-border energy infrastructure. Energy has moved from being merely a traded commodity to a strategic asset that shapes the direction of international relations.

Indonesia has a great opportunity to play a more decisive role in this change. As the largest economy in Southeast Asia, with a strategic geographical position and abundant energy resources, Indonesia has the capital to make energy an instrument of diplomacy that strengthens national interests while enhancing its bargaining position regionally and globally.

The multipolar era opens wider space for developing countries to play a more active role. The United States, China, the European Union, India, the Gulf states, and various emerging powers in the Asia-Pacific continue to strengthen their influence through investment, trade, technology, and energy.

In such a situation, countries that rely only on exporting raw materials will find it increasingly difficult to raise their strategic value. Conversely, countries able to build an energy and industrial ecosystem will have a far stronger bargaining position.

Indonesia has a relatively complete foundation. Coal, natural gas, geothermal, hydropower, solar, bioenergy, wind, and the potential of ocean energy give it an energy portfolio few other countries possess. At the same time, Indonesia is also a major producer of critical minerals such as nickel, copper, tin, and bauxite, which are key raw materials for batteries, electric vehicles, transmission grids, and various low-carbon technologies.

This advantage is further reinforced by Indonesia’s success in building a bioenergy industry. As the world’s largest palm oil producer, Indonesia has demonstrated leadership through the development of biodiesel, which continues to progress towards higher blends. Its experience in building the biofuel supply chain, from plantations and processing industries to distribution, is a diplomatic asset few countries possess.

Amid rising global demand for low-emission fuels, Indonesia’s capacity to develop biodiesel can become an increasingly valuable diplomatic instrument, not only through product exports but also through knowledge transfer, joint investment, harmonisation of sustainability standards, and technology development with partner countries.

These opportunities do not stop at biodiesel. Indonesia also has significant prospects in developing bioethanol, bio-aviation fuel, biomethane, and various forms of next-generation bioenergy that utilise agricultural waste and biomass. With its rich biodiversity, Indonesia has the potential to become one of the world’s bioenergy innovation hubs while expanding its influence in global energy diplomacy.

All of this potential shows that energy diplomacy is no longer synonymous with oil and gas exports. Today, energy diplomacy encompasses investment, technology development, supply chain integration, regional energy infrastructure, green financing, and research collaboration. Energy has become a new language of international relations, and Indonesia has strong credentials to speak more loudly through that language.

This direction aligns with the policy of the government of President Prabowo Subianto, which places energy security as one of its national development priorities. Efforts to increase domestic energy production, accelerate the development of new and renewable energy, strengthen downstream processing of natural resources, and promote industrialisation provide an increasingly solid foundation for Indonesia to expand its energy diplomacy. A country with a strong energy foundation will be more confident in building mutually beneficial international cooperation.

In the regional context, ASEAN presents enormous opportunities. Southeast Asia’s economic growth is expected to continue driving energy consumption, whether for manufacturing industries, data centres, transport, or new economic zones.

This opens space for Indonesia to develop as a regional energy hub through natural gas trade, renewable energy development, and regional electricity grid interconnection.

One of the most strategic initiatives is the ASEAN Power Grid. Cross-border electricity interconnection is not merely a transmission cable project, but a foundation for energy security, system efficiency, and regional economic integration. With its vast clean energy potential, Indonesia has the opportunity to become one of the main players in the regional electricity network while strengthening its position as a reliable energy supplier.

Equally important, Indonesia can expand its energy diplomacy through the natural gas sector. Over the coming decades, gas will still play an important role as a transitional energy source for many developing countries. The development of LNG exports, regasification facilities, and regional distribution infrastructure can serve as instruments of cooperation that deepen Indonesia’s economic ties with countries both within and beyond ASEAN.

However, strong energy diplomacy cannot rest on commodity exports alone. Indonesia’s strategic value will be far greater if it can offer a complete industrial ecosystem. This is where the downstream processing of natural resources becomes an essential element of modern energy diplomacy.

Indonesia must not be known only as a supplier of nickel, copper, tin, or bauxite, but also as a producer of battery materials, electric vehicle components, cables, energy storage systems, and various high value-added manufactured products.

This approach will strengthen Indonesia’s appeal as a global investment destination. Today, investors look not only for resource-rich countries, but also regulatory certainty, quality infrastructure, workforce readiness, policy stability, and the ability to build integrated supply chains. For this reason, economic diplomacy and energy diplomacy must go hand in hand. Energy becomes the gateway for investment, while investment strengthens national industrialisation.

Energy diplomacy also has an increasingly important security dimension. Various international conflicts in recent years have shown that disruptions to energy supply can trigger inflation surges, disrupt industrial activity, and even affect a country’s political stability. In this context, energy cooperation is no longer merely a business transaction, but part of a strategy to strengthen national resilience.

Indonesia has a geographical advantage that is hard to match. Shipping routes such as the Malacca Strait, Sunda Strait, and Lombok Strait are strategic corridors through which most of the world’s energy trade passes. This position carries enormous geopolitical value.

Therefore, the development of energy ports, LNG terminals, modern logistics systems, maritime security, and other supporting infrastructure not only strengthens the national economy but also elevates Indonesia’s position in the global energy architecture.

At the same time, Indonesia must uphold the principle of a free and active foreign policy that has long been the foundation of its national diplomacy. Amid the rivalry of the great powers, Indonesia does not need to align itself with any single bloc.

On the contrary, Indonesia needs to expand partnerships with various countries based on national interests, whether through investment cooperation, technology transfer, industrial development, or expanded market access. An inclusive approach will widen the room for diplomatic manoeuvre while reducing dependence on any single partner.

For this reason, Indonesia’s energy diplomacy must not be reactive or merely follow global dynamics. Energy diplomacy must become a long-term strategy designed consistently and integrated with the national development agenda. There are at least five priorities worthy of focus.

First, strengthening Indonesia’s position as the clean energy investment hub of Southeast Asia. Regulatory certainty, accelerated permitting, infrastructure development, and a competitive investment climate will determine Indonesia’s ability to attract global capital in the energy sector.

Second, expanding technology development cooperation. The future of energy will be determined by innovation in energy storage, hydrogen, carbon capture and storage (CCUS), artificial intelligence, the digitalisation of electricity grids, and data-driven energy management systems. Indonesia needs to be part of the global innovation ecosystem, not merely a market for foreign technology.

Third, strengthening critical mineral diplomacy. Demand for nickel, copper, tin, and various strategic minerals is expected to continue rising alongside the growth of the electric vehicle and clean energy industries. With sustainable governance and consistent downstream policies, Indonesia has the opportunity to become one of the main nodes in the global supply chain.

Fourth, promoting regional energy integration through cross-border projects, including strengthening the ASEAN Power Grid, regional electricity trade, gas infrastructure development, and renewable energy collaboration. The more interconnected ASEAN’s energy systems become, the greater Indonesia’s opportunity to play the role of a regional energy trading and distribution hub.

Fifth, strengthening domestic energy security as the primary foundation of international diplomacy. No country can build influence through energy if its own domestic needs are not yet assured. Therefore, increasing energy production, diversifying the energy mix, building strategic reserves, strengthening the electricity grid, and improving energy efficiency must remain national priorities.

These five agendas are interconnected. Energy security strengthens investor confidence. Investment drives industrialisation. Industrialisation creates value added and jobs. Value added increases economic competitiveness, while competitiveness strengthens Indonesia’s position in international diplomacy. In other words, energy diplomacy is not a stand-alone foreign policy, but an extension of national economic strength.

In an increasingly multipolar world, such an approach becomes ever more relevant. Countries with abundant energy resources that fail to build industry will lose momentum. Conversely, countries able to connect resources, technology, investment, and diplomacy will gain influence far greater than the size of their economies.

Indonesia possesses all of these prerequisites. Its wealth of natural resources, strategic geographical position, large domestic market, steadily growing industrial capacity, and the government’s commitment to strengthening energy security are assets that few countries possess simultaneously. The next challenge is no longer about potential, but about the consistency to translate that potential into a measurable national strategy.

In the end, energy is not merely a source of state revenue or a traded commodity. Energy has become a diplomatic instrument that determines the direction of investment, strengthens international cooperation, safeguards national resilience, and builds a country’s influence in the global arena. Indonesia has the opportunity to seize this momentum.

Therefore, this is the right moment for Indonesia to make energy diplomacy one of the main pillars of its foreign policy and national development. By strengthening domestic energy security, accelerating downstream processing, building equal international partnerships, and promoting sustainable innovation and investment, Indonesia will not only become an energy supplier to the world, but also one of the countries that help determine the direction of the global energy future.

Visionary energy diplomacy will ultimately not only strengthen Indonesia’s position on the international stage, but also deliver tangible benefits in the form of economic growth, jobs, national resilience, and greater prosperity for all the Indonesian people.