Indonesia and Japan Collaborate on Clean Energy Development
Jakarta — The Indonesian Government continues to strengthen economic cooperation with Japan, particularly in the industrial sector, clean energy, and strengthening global supply chains. This partnership is considered important for driving economic growth whilst reinforcing national industrial transformation.
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that Japan has played a major role in developing the automotive industry in Indonesia.
“In the automotive sector, Japan has played an important role in building the automotive industry ecosystem in Indonesia. Currently, Indonesia not only has a domestic market but has also developed as an automotive production base that exports vehicles to more than 70 countries,” said Airlangga when meeting with Executive Acting Secretary-General of the Liberal Democratic Party Koichi Hagiuda in Tokyo, Wednesday (11 March 2026) local time.
According to Airlangga, the Government continues to work to maintain an investment climate so that the national automotive industry becomes increasingly competitive. One way is by strengthening the component industry, particularly at tier two and tier three levels, so that the domestic supply chain becomes stronger.
Beyond the industrial sector, cooperation between the two countries is also developing in the clean energy field. Japan is said to support Indonesia’s efforts to develop more environmentally friendly fuels, including the implementation of the B40 programme as well as plans for E20 development by 2028.
Collaboration on new and renewable energy is also progressing through the Asia Zero Emission Community (AZEC) framework. Several projects have reached the financing stage, including the development of Muara Laboh geothermal power plant in West Sumatra, the Legok Nangka waste-to-energy project in West Java, and the hydroelectric power generation project in North Kalimantan.
In the meeting, both parties also discussed opportunities for strategic industrial cooperation, including strengthening the supply chain for technologies such as semiconductors. Japan also sees great potential for Indonesia in supporting economic security through the development of these industries.
Furthermore, the role of the Japan Organization for Metals and Energy Security (JOGMEC) is also expected to expand collaboration on resource development and industry between the two countries.
The Government believes that economic relations between Indonesia and Japan will continue to develop. The partnership is expected to be able to open up investment opportunities, strengthen national industry, and create broader economic benefits for society.