This chapter analyzes Indonesian energy industry development situation，policies and cooperation between China and Indonesia. The study finds that Indonesia has great potential of oil and gas resources，but due to insufficient investment，the proved workable reserves and actual production capacity are declining. The oil reserve-production ratio is 9.2，far lower than the world average ratio of 50.2. Indonesia’s electricity supply is relatively constrained，and new energy resources are abundant but under-developed. There are huge space for energy cooperation between China and Indonesia，but it also faces some challenges from so-called “resource nationalism”. The report suggests strengthening bilateral energy cooperation by following ways：First，to build a better external environment for energy cooperation，including enhancing political mutual trust，developing an efficient mutually beneficial cooperation model，and carefully handling relations with other major countries；Second，to utilize the mechanism of the East Asia Summit and the China-ASEAN cooperation forum to intensify energy cooperation. Third，to facilitate cooperation from the technical aspect，such as building information platforms，expanding financing supports，extending the energy industrial chain. Fourth，to strengthen cooperation in new energy area，such as establishing dialogue mechanism for new energy development，encouraging technology innovation and related human capital cooperation.