Indonesia’s Renewable Energy Deals Spark Hypocrisy Concerns Amidst Pro-Palestine Stance
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- Indonesia’s Renewable Energy Deals Spark Hypocrisy Concerns Amidst Pro-Palestine Stance
Jakarta, Indonesia – Indonesia, a long-standing vocal supporter of Palestinian statehood, is facing mounting scrutiny over its burgeoning economic ties with Israeli-linked companies. Despite decades of refusing formal diplomatic relations with Israel and consistently championing the Palestinian cause,Indonesia is quietly welcoming investment from firms with direct ties to the Israeli state,most notably Ormat Technologies,a global leader in geothermal energy.
A History of Support for palestine
Since the era of Indonesia’s first president, Sukarno, the nation has maintained a firm stance in solidarity with Palestine. This commitment has been consistently reaffirmed through diplomatic channels, international forums, and national commemorations. This year,President Prabowo Subianto oversaw aid drops into Gaza on Indonesia’s Independence Day,while the Foreign Minister actively advocated for Palestinian rights on the global stage. The Indonesian Ulema Council further solidified this position by issuing a fatwa prohibiting indirect support for Israel.
Did You Know? Indonesia does not have formal diplomatic relations with Israel, a policy rooted in its strong support for Palestinian independence.
Ormat’s Expanding Footprint in indonesia
However, investigative reporting by deduktif.id reveals a different narrative. Ormat Technologies has substantially expanded its presence in Indonesia’s renewable energy sector, owning nearly half of the Ijen geothermal project in East Java, a ample stake in the Sarulla project in North Sumatra, and holding full control of a unit in North Sulawesi. The company is also actively expanding operations in Maluku. These are not minor investments; they represent a core component of Indonesia’s aspiring “green energy” future.
| Project | Location | Ormat Ownership |
|---|---|---|
| Ijen | East Java | ~49% |
| Sarulla | North Sumatra | Notable Stake |
| North Sulawesi Unit | North Sulawesi | 100% |
| Maluku Expansion | Maluku | Ongoing |
Local Impacts and Allegations of Harm
the presence of Ormat is not without controversy. Residents near the Ijen geothermal site in Bondowoso report environmental damage, including poisoned wells, ruined farmland, and disruptive explosions that have forced school closures. Concerns are also rising over toxic gas emissions and their impact on public health. In Maluku, indigenous communities who opposed Ormat’s projects faced criminalization and displacement from their ancestral lands. This echoes the dispossession experienced by Palestinians, raising serious ethical questions about Indonesia’s commitment to solidarity.
Pro Tip: Geothermal energy, while renewable, can have significant environmental and social impacts if not managed responsibly.
Israel’s Strategic Influence Operations
Experts suggest ormat’s expansion is part of a broader Israeli strategy to exert influence in countries lacking diplomatic ties. Israel’s Hasbara Fellowship actively recruits individuals, including Indonesians, for training programs in Jerusalem. These programs aim to cultivate positive perceptions of israel and normalize its business interests abroad.Deduktif.id’s inquiry revealed that Indonesian participants have returned from these trips and actively engaged in shaping public discourse.Furthermore, academic institutions like the Bandung Institute of Technology (ITB) have established partnerships with Ormat, including joint webinars and a dedicated geothermal engineering master’s program, possibly serving as a form of “political laundering” to legitimize the company’s operations.
Concerns Over Ormat’s Business Practices
Ormat’s track record outside of Indonesia has also raised red flags. Hindenburg Research documented allegations of bribery, money laundering, and corruption related to the company’s projects in Guatemala, Kenya, and Honduras. Israeli prosecutors have previously investigated company officials for bribery and securities fraud. Despite these concerns, Ormat has been welcomed as a key partner in Indonesia’s national energy sector.
This situation presents a stark contradiction. Indonesia publicly champions anti-colonial solidarity while together granting lucrative contracts to Israeli firms. It condemns occupation abroad while potentially enabling land grabs at home. It supports a fatwa against indirect support for Israel, yet appears to disregard it in practice. As noted by scholars of international relations, such inconsistencies can erode a nation’s credibility and undermine its stated foreign policy goals (Mearsheimer & Walt, 2000).
The Path Forward: Aligning Rhetoric with Action
Critics argue that Indonesia’s actions actively undermine the Palestinian struggle.Drawing parallels to the accomplished anti-apartheid movement in South Africa, they emphasize the importance of boycotts, divestments, and sanctions. Every financial transaction with Israeli-linked companies strengthens the system of occupation and dispossession. Indonesia has viable alternatives, with potential partnerships available with Japan, South Korea, China, and the European Union to finance its renewable energy transition.
To truly demonstrate its commitment to Palestine,Indonesia must take decisive action: cancel Ormat’s contracts,prohibit future deals with Israeli-linked companies,direct universities to end partnerships that legitimize Israel’s image,and enforce the existing fatwa. The choice is clear: continue to offer symbolic support while enabling complicity,or align words with deeds and demonstrate genuine solidarity.
No investment deal can obscure complicity, and no contract is worth betraying an occupied people.
Looking Ahead: Indonesia’s Energy Future and Geopolitical Shifts
Indonesia’s energy transition is a critical component of its national development plan. The nation aims to significantly increase its renewable energy capacity in the coming decades, driven by growing energy demand and a commitment to reducing carbon emissions. However, the debate surrounding Ormat’s involvement highlights the complex geopolitical considerations that shape indonesia’s energy policy. The country’s strategic position in Southeast Asia and its role within the non-Aligned Movement further amplify the importance of its decisions regarding international partnerships. Future developments will likely hinge on Indonesia’s ability to balance its economic interests with its long-held principles of solidarity and independence.
Frequently Asked Questions
- what is Ormat Technologies? Ormat Technologies is a global leader in geothermal energy, founded in Israel, with significant investments in Indonesia’s renewable energy sector.
- Why is Indonesia’s relationship with Ormat controversial? Indonesia has a long-standing policy of not having diplomatic relations with Israel,yet is accepting investment from an Israeli-linked company.
- What are the local impacts of Ormat’s projects in Indonesia? Residents near Ormat’s geothermal sites have reported environmental damage, including poisoned wells and disrupted livelihoods.
- What is the Hasbara Fellowship? It’s an Israeli program that recruits individuals, including Indonesians, for training in Israel aimed at improving Israel’s public image.
- What can Indonesia do to address these concerns? Indonesia could cancel Ormat’s contracts, ban future deals with Israeli-linked companies, and enforce its existing fatwa against indirect support for Israel.
what are your thoughts on Indonesia’s position? Do you believe economic interests should outweigh political principles?
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