Indonesia–Japan Partnership Opens Green Energy Pathway; Economist: Momentum to Strengthen National Energy Security
An economist from Surabaya State University (UNESA), Hendry Cahyono, has praised the energy diplomacy of Energy and Mineral Resources Minister Bahlil Lahadalia regarding Indonesia–Japan cooperation in the energy and critical minerals sector. He views this as a strategic step in promoting green energy transition whilst strengthening national energy resilience.
The collaboration encompasses nuclear energy development, LNG exports, and waste-to-energy power generation (PLTSa). Cahyono believes the agreement signals that Indonesia is increasingly serious about developing clean energy based on advanced technology.
“From a technical and economic standpoint, Indonesia has actually been planning nuclear power plant development since the 1960s. This MoU demonstrates forward progress, although the path to realisation remains lengthy,” Cahyono told reporters on Tuesday, 17 March 2026.
The cooperation is formalised in a Memorandum of Cooperation (MoC) signed by Energy Minister Bahlil Lahadalia and Japan’s Minister of Economy, Trade, and Industry Ryosei Akazawa.
According to Cahyono, cooperation with Japan provides Indonesia with a significant opportunity to accelerate mastery of new energy technologies, including nuclear energy, which has previously been constrained by investment costs and technology transfer barriers. He emphasised that the partnership’s potential benefits are substantial, particularly given Indonesia’s abundant mineral resources, especially in supporting a clean energy ecosystem.
“Indonesia possesses approximately 43 per cent of the world’s nickel reserves, plus bauxite, tin, copper, and rare earth metal reserves. These constitute a strong foundation for downstream processing and development of the green energy industry,” he stated.
Cahyono added that the cooperation extends beyond energy supply, with significant potential for multilayered economic impact on Indonesia. These range from enhanced production efficiency to job creation.
“A multiplier effect is anticipated for national production efficiency, increased revenue, and labour absorption,” Cahyono said.
Furthermore, Cahyono noted that amid an uncertain global geopolitical landscape, Indonesia’s move to strengthen energy cooperation represents a sound and visionary decision.
“This step constitutes a rational response to geopolitical disruption. Indonesia’s current position is actually within an exceptionally favourable window of opportunity,” he stated.
Nevertheless, Cahyono stressed the importance of ensuring the cooperation is implemented optimally, particularly regarding technology transfer, to prevent Indonesia from merely becoming a market. Although Indonesia lags relatively behind developed nations in nuclear energy development, Cahyono argued this situation offers distinct advantages.
“Indonesia can learn from the experiences of other countries, including the Fukushima incident, thereby directly adopting safer technology without repeating past mistakes,” he concluded.
Previously, the energy MoU signing was conducted by Bahlil and Akazawa during a bilateral meeting held on the sidelines of the Indo Pacific Energy Security Ministerial and Business Forum in Tokyo, Japan, on Sunday, 15 March 2026.
Cooperation in nuclear energy focuses on technology development whilst prioritising high safety standards. Through this partnership, Indonesia has the opportunity to leverage Japan’s experience and technology to develop low-carbon energy.