- The UK and Indonesia agreed to launch an economic growth partnership to boost trade, investment and clean energy collaboration.
- The deal opens opportunities for UK firms in renewable and grid projects and supports Indonesia’s 42.6GW clean energy target.
The UK and Indonesia have agreed to create an economic growth partnership to expand bilateral trade and investment. The partnership will cover clean energy, green financing and decarbonised supply chains.
Under the agreement, both countries will cooperate on grid connectivity and transmission for Indonesia’s planned “Green Enabling Super Grid”. The project seeks to address the gap between renewable energy resource areas and major demand centres by strengthening national grid infrastructure and building interconnections. The UK will share knowledge on grid design, transmission and system operation.
Indonesia will consider participation from UK businesses in priority projects linked to the Super Grid. These projects include the Java–Bali and Java–Sumatra connections, as well as other renewable energy developments. The agreement also identifies opportunities for UK involvement in Indonesia’s target of developing 42.6GW of new and renewable power plants under its 2025–34 power plan.
The two countries may also explore project financing options. Discussions could involve support from UK Export Finance, the UK’s export credit agency. Both governments welcomed greater participation from financial institutions and private sector companies to accelerate Indonesia’s energy transition.
The UK has already partnered with Indonesia through the Partnering for Accelerated Climate Transitions (UK PACT) programme. The programme is jointly funded by the UK Foreign, Commonwealth and Development Office and the Department for Energy Security and Net Zero. Under the Indonesia-UK PACT fund, the UK has committed £ 14.2 million to support energy efficiency and low-carbon transport.
Both sides also identified opportunities for cooperation in agriculture, transport infrastructure, and logistics. These areas aim to lower emissions and support long-term economic growth.