Environmental Sustainability: UK-Indonesia Collaboration

Seema Malhotra Excerpts

Tuesday 23rd June 2026 Westminster Hall

[The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (Seema Malhotra)]

It is a pleasure to serve under your chairship, Sir Jeremy.

I am very grateful to my hon. Friend the Member for Bristol East (Kerry McCarthy) for securing this debate. I pay tribute to her long-standing work on climate and environmental issues, and to her generosity in sharing with us her experience of “squelching” in the Indonesian peatlands. Her account, alongside the contributions of other hon. Members who have also recently visited Indonesia, brought to life the richness of the environment in the country, and therefore the importance of our work together on climate and nature.

I am also grateful for the thoughtful contributions of hon. Members from across the House in speeches and interventions today, including by the shadow Minister, the hon. Member for Fylde (Mr Snowden); the Liberal Democrat spokesperson, the hon. Member for South Cotswolds (Dr Savage); my right hon. Friend the Member for Oxford East (Anneliese Dodds); my hon. Friend the Member for Leeds Central and Headingley (Alex Sobel); the hon. Member for Strangford (Jim Shannon); and my hon. Friend the Member for Brent West (Barry Gardiner).

I recognise that this is a very timely and important debate. It comes just a few months after my first visit to Indonesia. I am very grateful to our climate and nature special envoys who were referred to in this debate, Rachel Kyte and Ruth Davis, for their extremely important work and their contributions to many discussions with Ministers across different Departments.

There is a very strong interest in this House in how we tackle climate change and protect nature, and in how we work with partners around the world to do so. With Indonesia, the core of our partnership is focused on climate, nature and energy co-operation. It is also important to say up front that Indonesia is pivotal to global outcomes on climate and nature for the reasons that we have heard today, including the scale of its rainforests and biodiversity. Indeed, its actions on energy, forests and oceans will help to tackle similar challenges across the world.

I also pay tribute to the work of my hon. Friend the Member for Bristol East as the UK’s Climate Minister last year, during which time she visited Indonesia. I know that she saw at first hand how our partnership with Indonesia works in practice. In Jakarta, she met Energy Minister Bahlil. She worked to deepen our co-operation on the energy transition—from renewables to carbon capture, carbon markets and critical minerals, all of which were referred to in today’s informed debate—recognising the real economic and political challenges that Indonesia faces as it moves away from coal. I am proud that she launched a UK-supported micro-hydro project in Lombok, demonstrating how we are working alongside Indonesia to support clean, reliable energy at a community level.

That combination of high-level policy engagement and practical delivery is central to our approach across climate, energy and nature, and we continue to build on that through our ongoing dialogue with Indonesian partners. Indonesia stands out as one of the most important countries in the world for climate and nature. It is home to the world’s third largest tropical rainforest basin and has rich marine ecosystems that store carbon and support extraordinary biodiversity. It is a major emitter and a major part of the solution.

As a G20 economy and a leading voice in the Association of Southeast Asian Nations, Indonesia has influence well beyond its region. Its economy has long depended on sectors such as coal and palm oil, and like many countries it faces difficult choices as it seeks to balance growth with environmental protection. At the same time, Indonesia has committed to reducing emissions and is taking steps on forest protection, clean energy and climate finance. This Government are clear that global challenges such as climate change and biodiversity loss can be tackled only through partnership, because no country can do this alone.

I will endeavour to respond to a number of comments raised today. My hon. Friend the Member for Leeds Central and Headingley will be aware of concerns about Mama Yasinta. We take seriously all reports of human rights violations across Papua. We are concerned about the recent increase in violence in Papua, including fatalities. I visited Indonesia in February and underlined the importance that the UK attaches to human rights. I raised the issue of Papua directly with the vice Foreign Minister.

I also want to refer to the UK’s approach to supporting orangutans, which is twofold: to decrease the drivers of orangutan habitat loss and to support the mobilisation of finance for habitat conservation. An important example of sustainable commodity production is the multi-stakeholder forestry partnership phase 5, referred to earlier. That programme is helping Indonesia to strengthen the sustainability and legality of its timber production, ensuring that pressure from the forestry industry is managed sustainably. That is relevant for habitats across Indonesia, including the ecosystems of Kalimantan and Sumatra that are home to Indonesia’s orangutans.

Threats to Indonesia’s maritime environments include pollution; illegal, unreported and unregulated fishing practices; and warming waters linked to climate change. The UK and Indonesia continue to work closely with each other through the Blue Planet fund country plan. We are proud to partner with Indonesia through that fund and the maritime partnership programme. A number of hon. Members referred to the maritime challenges, and it is important to keep that focus in our debate.

In relation to the UK’s action, we have worked closely with Indonesia for more than 20 years, combining diplomacy, technical support and targeted finance to tackle environmental and nature issues. Indeed, what started as co-operation on sustainable timber has grown into a wider partnership. Hon. Members also referred to the important engagement earlier this year when the Prime Minister and President Prabowo Subianto agreed a new strategic partnership. The ambition for climate, energy and nature was clear at the Lancaster House breakfast, which I attended, where President Prabowo and His Majesty the King came together with a vision for Indonesia as a global leader in sustainable nature finance.

We are now taking that important ambition forward in practical ways. For example, we are supporting efforts to protect forests and tackle deforestation, including in supply chains such as palm oil. We are backing Indonesia’s energy transition, including through a just energy transition partnership. We are committed to providing a guarantee to unlock $1 billion of additional climate finance from the World Bank to support the energy transition. That is important because we know that Indonesia has to fill a significant climate finance gap to meet its mitigations and adaptation goals.

[Sarah Dyke]

The Minister is clearly setting out how the Indonesian rainforests and peatlands deliver irreplaceable global climate benefits. We know that conservation efforts have been severely undermined because of the funding issue and she is setting out that new funding will be available. Will she also set out a clear timeframe for that funding?

[Seema Malhotra]

I am happy for the hon. Lady to write to me to ask about the specifics because there are different funds, some of which are already deployed and some of which will continue in the future. If she would like to know more about specific funds, we can probably answer that.

It is also important to recognise that we are supporting efforts to strengthen governance and ensure that communities, including indigenous peoples, are part of that transition. I am grateful to my right hon. Friend the Member for Oxford East for referencing the engagement and the rights of indigenous peoples.

[Kerry McCarthy]

On that specific point, Fairtrade was holding an event in the IPU room earlier and I was concerned to hear about the cost of complying with forest risk commodities regulation for indigenous farmers. They were citing figures in the tens—I think the low tens—for both African and Latin American smallholders. Can the Minister speak to her colleagues in DEFRA about how we can ensure that the burden of these regulations does not fall on people in indigenous communities? I think the answer is having co-operatives or regional government-led initiatives to make sure that they can comply with the certification, but can she make sure that that point is taken up?

[Seema Malhotra]

My hon. Friend raises an important point and I am happy to pick that up with colleagues. When we look at sustainability, we should also recognise the role that indigenous peoples play in supporting the environment and climate.

As I have referenced, it is important that we raise concerns about deforestation, supply chains and the pace of change. These are complex issues, particularly in countries like Indonesia, where commodities such as palm oil and timber are central to growth and livelihoods.

As my hon. Friend the Member for Bristol East referred to, the Government announced today that the UK is introducing a new approach to deforestation regulations to help to ensure that our consumption does not drive global forest loss. That will require businesses to strengthen due diligence and improve traceability in their supply chains. As my right hon. Friend the Member for Oxford East outlined, we are clear on that goal, but we also recognise that it must be done in a way that supports rather than undermines our partners. The UK has worked closely with Indonesia on sustainable forestry and supply chains for many years, and we will continue to engage and work in partnership with Indonesia and other partners as the policy develops to ensure that our approach reflects local contexts, is proportionate and supports sustainable growth, alongside forest protection.

Representatives from the Indonesian Government are in the UK this week for London Climate Action Week, to meet representatives from across the UK’s Government, private sector and civil society. This is an important and landmark week, during which we can share the full extent of the UK’s ambitions on climate and energy with partners across the world. I am pleased that on Thursday morning, the Indonesian Minister of Forestry, Raja Juli Antoni, and I will co-host a roundtable at the FCDO to showcase the Peusangan elephant conservation initiative: a flagship model under Indonesia’s new presidential taskforce to develop innovative financing for national parks. That is another initiative that demonstrates how conservation, livelihoods and finance can be brought together in incredible, investable opportunities.

To conclude, the UK-Indonesia partnership on environmental sustainability is wide, ambitious and rooted in practical co-operation. It spans forests, wildlife, cleaner energy, ocean protection and support for communities whose lives depend on the natural world. The partnership is backed by strong political commitment on both sides, and is supported by growing engagement between Governments, businesses and civil society.

We know that the scale of the challenge is significant, and that progress will take time. Like all countries, Indonesia will need international support to meet its commitments, and the strength of our partnership gives real grounds for confidence. Under Labour’s leadership, the United Kingdom will continue to share investment and practical support with Indonesia, because the choices that we make together will help to shape a safer, more secure and more prosperous future for both of our countries.