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Addressing conflicts of interest and corruption in Indonesia’s energy transition

Conflicts of interest and corruption in Indonesia's political economy pose significant risks to its energy transition, including the Just Energy Transition Partnership. Existing legal and institutional frameworks are fragmented, inconsistently applied, and often fail to address the risk of state capture by powerful political and economic actors, especially in the extractive and energy sectors. The reliance on fossil fuel industries for political financing and the monopolistic nature of state-owned entities further complicate the shift to a low- or no-carbon system, despite the country's ambitious renewable energy targets. Potential pathways to greater anti-corruption resilience lie in improvements to beneficial ownership transparency and strengthening regulation, monitoring, and sanctioning of conflict of interest violations.

24 February 2026
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Addressing conflicts of interest and corruption in Indonesia’s energy transition

Main points

  • Corruption and conflicts of interest are embedded in the energy transition process due to the strong links between political power, private wealth (especially from extractive industries), and public office holders.
  • Existing anti-corruption regulations are often vague, fragmented across different legal instruments, and suffer from inconsistent enforcement, which creates loopholes susceptible to manipulation.
  • Progress in renewable energy uptake is slowed by the enduring influence and interests of fossil fuel incumbents who benefit from subsidies that keep coal an artificially cheap and viable energy source.
  • The Just Energy Transition Partnership is vulnerable to misallocations due to concentrated decision-making power, limited transparency in project selection, and insufficient involvement of national anti-corruption bodies and civil society in its planning.
  • Improving transparency of beneficial ownership and strengthening the monitoring and sanctioning of conflict of interest violations are possible pathways to build greater anti-corruption resilience, though these institutional efforts alone are insufficient to fully address state capture dynamics.

Cite this publication


Forster, R.; Williams, A.; Anindito, L.; Cabrejo le Roux, A. 2026. Addressing conflicts of interest and corruption in Indonesia’s energy transition. Bergen: U4 Anti-Corruption Resource Centre, Chr. Michelsen Institute (U4 Issue 2026:04)

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About the authors

Robert Forster is an adviser with U4, specialising in governance and addressing unequal development, with a regional focus on the Middle East. His work at U4 centers on anti-corruption efforts related to climate, environmental management, and natural resource extraction.

Aled Williams is a political scientist and senior researcher at Chr. Michelsen Institute and a principal adviser at the U4 Anti-Corruption Resource Centre. He is responsible for U4's thematic work on corruption in natural resources and energy, and holds a PhD from SOAS, University of London, on political ecology of REDD+ in Indonesia.

Lakso Anindito

Lakso Anindito is Indonesia Team Leader at the Basel Institute on Governance.

Amanda Cabrejo le Roux

Amanda Cabrejo le Roux is Deputy Director, Green Corruption at the Basel Institute on Governance.

Disclaimer


All views in this text are the author(s)’, and may differ from the U4 partner agencies’ policies.

This work is licenced under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International licence (CC BY-NC-ND 4.0)

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