Indonesia and Japan Sign Critical Minerals and Nuclear Energy Cooperation Agreement to Strengthen National Energy Security
Amid dynamic global geopolitical developments and growing clean energy demand, strengthening international cooperation has become an important step in maintaining energy security whilst supporting energy transition. Critical minerals and advanced energy technology are now regarded as strategic components in achieving net-zero emissions targets.
A series of agreements reached during the Indo-Pacific Energy Security Ministerial and Business Forum in Tokyo demonstrate that the Indonesian government continues to work towards strengthening national energy security.
One such cooperation is the Indonesia-Japan agreement to strengthen energy supply chains and support the development of future energy technologies in the Asia-Pacific region.
Indonesia’s Minister of Energy and Mineral Resources (ESDM) held bilateral meetings with Japan’s Minister of Economy, Trade, and Industry (METI), Ryosei Akazawa. The meeting took place during the Indo-Pacific Energy Security Ministerial and Business Forum (IPEM) in Tokyo, Japan, on Sunday, 15 March.
One of the main outcomes of the meeting was the signing of a Memorandum of Cooperation (MoC) in two strategic sectors: critical minerals and nuclear energy. This cooperation is expected to strengthen a more integrated, resilient, and sustainable energy system.
“I warmly welcome the memorandum we signed today, particularly in the field of critical minerals. We are very open and happy to invite the Japanese government and Japanese business leaders to jointly manage our critical mineral resources in Indonesia,” said Bahlil during the bilateral meeting.
For the critical minerals sector, this cooperation is directed towards strengthening the global supply chain to make it safer and more reliable. The collaboration is also expected to support the development of clean energy technology through the utilisation of strategic mineral resources available in Indonesia.
“We know that Indonesia has 43 per cent of the world’s total nickel reserves, and we are also one of the largest players in bauxite, tin, and copper. We also have rare earth metals, so if we are able to implement this, I think that is a good thing,” said Bahlil.
Japan’s Minister of Economy, Trade, and Industry (METI) Ryosei Akazawa emphasised the importance of strengthening cooperation amongst nations in facing global dynamics, particularly to maintain energy security and ensure stable supply.
According to him, the current geopolitical situation and global uncertainty require each nation to strengthen collaboration, including through securing strategic energy reserves.
“Amid the current global crisis situation, it is important for us to strengthen cooperation to maintain energy security. Japan itself has prepared strategic energy reserves as a precautionary measure,” said Akazawa.
He also expressed appreciation to the Indonesian government for its support regarding the export licence for Liquefied Natural Gas (LNG) to Japan. Furthermore, Akazawa reaffirmed Japan’s commitment to continue supporting various energy cooperation projects with Indonesia, including the completion of the Legok Nangka Waste-to-Energy Power Plant (PLTSa) as part of the strategic partnership between the two countries.
Meanwhile, cooperation in the nuclear energy sector is focused on the development and utilisation of technology whilst prioritising high safety standards. Through this cooperation, Indonesia has the opportunity to benefit from Japan’s experience and technology in developing low-carbon energy solutions.
Going forward, both countries will continue discussions regarding strengthening regional energy security, including cooperation on LNG and coal supply chains, and accelerating energy transition projects under the Asia Zero Emission Community framework, such as the operation of the Sarulla Geothermal Power Plant (PLTP) and the completion of the Legok Nangka Waste-to-Energy Power Plant (PLTSa).
This Indonesia-Japan cooperation is expected to strengthen energy security whilst supporting decarbonisation efforts in the Indo-Pacific region.