Prabowo Boosts Japanese Investment: Requests Downstreaming and EV Automotive

JAKARTA, KOMPAS.com - President of the Republic of Indonesia Prabowo Subianto held a meeting with 13 leaders of major Japanese companies in Tokyo on Tuesday (31/3/2026). This agenda is part of the head of state’s official visit to strengthen economic partnerships, including in the industrial and automotive sectors. Cabinet Secretary Teddy Indra Wijaya explained that the meeting focused on bolstering strategic investments, particularly industrial downstreaming, which is a government priority. Several major Japanese companies were present, including Toyota Motor Corporation, Mitsubishi Corporation, and Panasonic Group. Additionally, representatives from the energy, finance, trade, and pharmaceutical sectors attended. Some of the figures involved in the meeting included Takayuki Ueda (INPEX), Nobumitsu Hayashi (JBIC), Yoshinobu Tsutsui (Keidanren), and Masahiko Maeda, CEO of Toyota Asia Region. During the occasion, Prabowo urged Japanese investors to increase their business expansion in Indonesia, particularly in the downstreaming sector, which is seen as capable of creating high added value and opening up employment opportunities. “President Prabowo encouraged Japanese investors to be more active in expanding investments in Indonesia, especially in the downstreaming sector to increase added value and create jobs,” Teddy continued. The government also reaffirmed its commitment to maintaining a conducive investment climate oriented towards results, while strengthening the strategic partnership between Indonesia and Japan in the future. On the other hand, the issue of automotive industrial transformation was also in the spotlight, particularly regarding the acceleration of battery electric vehicle (BEV) adoption. President Prabowo previously stated that Indonesia needs to make an industrial leap, including in the automotive sector, by utilising domestic natural resources. “We must process raw materials into high-value industrial products. We have all the natural resources to make cars,” Prabowo said. He also touched on the attitude of Japanese car manufacturers, which he views as still tending to be cautious in developing pure electric vehicles.