Investment Minister Reveals Japan's US$23.3 Billion Investment Commitment, Energy Takes Centre Stage

TOKYO — Minister of Investment and Downstreaming/Head of BKPM Rosan Roeslani stated that investment commitments from Japan to Indonesia during his working visit to Tokyo reached approximately US$23.3 billion. This figure is seen as an indicator that the confidence of the Japanese Government and Japanese business players in Indonesia remains strong amid global geopolitical and geo-economic pressures.

“International confidence, in this case from the Japanese Government and Japanese entrepreneurs towards Indonesia, remains high and committed,” said Rosan in Japan on Monday, 30 March.

According to Rosan, who is also Chairman of BPI Danantara, the largest portion comes from joint projects with Pertamina valued at around US$20.9 billion. Rosan said details of the project would be further explained by the Minister of Energy and Mineral Resources Bahlil Lahadalia, as the majority relate to major impact projects with Pertamina.

In addition, Rosan mentioned that Danantara, which he leads, also signed an investment cooperation agreement with SMBC Aviation Leasing worth approximately US$800 million. Pegadaian also obtained funding from SMBC Bank of around Rp5 trillion or approximately US$300 million.

“If we look at the total of all this, it proves that Japan remains one of Indonesia’s main investors,” he said.

Rosan added that there are still other investments that were agreed upon, including the expansion of a geothermal project between PT Supreme and a Japanese company, which according to Rosan involves Sumitomo. He also mentioned the financial closing of the geothermal project in Muara Laboh worth approximately US$900 million, although that project is not included in this signing package because the process was completed earlier.

He emphasised that Japanese investors’ interest in the renewable new energy sector is very high. Therefore, the government hopes that the investment flow from Japan does not stop at signing but continues to project realisation.

Amid the unstable global situation, this figure becomes a message that is more important than just a business ceremony: Japan has not withdrawn from Indonesia, and the energy sector is now the main arena of its bet.