Japan allocates Rp171 trillion to aid Southeast Asia in securing oil supply

Tokyo - Japan has decided to allocate funds amounting to $10 billion (Rp171 trillion) to assist Southeast Asian countries in addressing the surge in crude oil prices resulting from the conflict in the Middle East.

According to a Japanese government source on Wednesday, the aid will be provided in the form of loans to help Southeast Asian nations secure crude oil supplies.

Prime Minister Sanae Takaichi will announce the aid plan in an online meeting with leaders of Southeast Asian countries in the near future, the source stated.

Japan is known to import petroleum-derived products from Southeast Asia, including those used in medical facilities.

Given that Southeast Asian countries have limited oil reserves, there are concerns that supply constraints could impact Japan.

The sharp rise in oil prices has raised worries in several Southeast Asian countries about their ability to pay for imports of the commodity.

Any disruptions in procuring the commodity could have serious consequences for Japan’s medical health sector as well as various industries, the source said.

Therefore, Tokyo is seeking to mitigate these risks through financial assistance, including loan facilities provided by the Japan Bank for International Cooperation (JBIC), to ensure energy supply stability and mitigate broader economic impacts.