Indonesia and Japan Strengthen Cooperation in Industry, Clean Energy, and Technology
The Indonesian Government is strengthening strategic partnership with Japan in the development of industry, energy transition, and the strengthening of global supply chains. This was discussed during a meeting between Coordinating Minister for Economic Affairs Airlangga Hartarto and Executive Acting Secretary-General of the Liberal Democratic Party (LDP) Koichi Hagiuda in Tokyo, Japan, on Wednesday, 11 March.
Airlangga stated that Indonesia-Japan cooperation has developed increasingly broadly and has become one of the important pillars in supporting economic growth and industrial transformation in both countries.
“In the automotive sector, Japan has played an important role in building an 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,” Airlangga said in a statement released on Thursday, 12 March.
Indonesia also appreciates Japan’s investment contribution to the development of the national automotive industry. Going forward, Airlangga said, Indonesia will continue to maintain an investment climate through increasing the competitiveness of the automotive component industry.
“Especially at tier 2 and tier 3, so as to strengthen the automotive industry supply chain and encourage the emergence of universal brands,” he explained.
On this occasion, Koichi Hagiuda conveyed support for Indonesia’s steps in developing more environmentally friendly fuel, including the implementation of the B40 programme as well as plans to develop E20 by 2028. The Japanese automotive industry is said to be ready to follow the direction of the Indonesian Government’s policy in supporting the energy transition agenda in the transport sector.
In addition, cooperation in the field of new and renewable energy is also continuing to advance through the Asia Zero Emission Community (AZEC) framework. A number of projects have achieved financial closing and are continuing. Examples include the development of the 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.
Furthermore, both parties also discussed opportunities for future strategic industrial cooperation, including through the role of the Japan Organization for Metals and Energy Security (JOGMEC), which was established by Prime Minister Sanae Takaichi. This effort will expand collaboration on resource and industry development between Japan and Indonesia.
Japan also sees great potential for Indonesia in strengthening the economic security sector, including in the development of technology industry supply chains such as semiconductors.
“The Indonesia-Japan meeting affirms the increasingly strong partnership between the two countries in supporting the development of strategic sectors. Going forward, their collaboration is expected to continue to be strengthened in order to promote sustainable economic growth and increasingly competitive industrial development,” he concluded.