It is generally believed that China will continue to dramatically expand her presence and influence in Indonesia's energy market in the years ahead. Yet, we would argue that China's economic prospect in Indonesia's energy sector becomes blurred and even complicated once she intends to further partake in Indonesia's domestic energy production and crude oil extraction. Through careful examination of Indonesia's regulations, liberalization, and social protection in its energy sector, this paper aims to explain how and to what extent Indonesia responds to China's strategic energy actions and its implications. © 2020 Institute of China and Asia-Pacific Studies - National Sun Yat-sen University. All rights reserved.