The Real Test of the Indonesia-Japan Partnership

President Prabowo Subianto has urged the strengthening of the strategic partnership between Indonesia and Japan, particularly in the fields of economy, investment, and future industrial development. He conveyed this during the Indonesia-Japan Business Forum in Tokyo, Japan, on Monday (30/3/2026). According to Prabowo, Japan is an important partner that has made significant contributions to Indonesia’s economic development over several decades. He also appreciated the role of Japanese companies that have long invested and understand the characteristics of the Indonesian market and society. Prabowo emphasised that his presence at the forum was not only to continue existing cooperation but also to encourage an elevation of the partnership to a higher level. He believes that strong economic collaboration can strengthen relations while creating long-term stability. Over decades, economic relations between Indonesia and Japan have been relatively stable and predictable. Japan injects capital, technology, and management expertise, while Indonesia provides a vast market and abundant natural resources. Japanese investments in the country are evident in various sectors, from automotive and electronics to renewable energy and manufacturing. The question is: will Indonesia remain merely an investment project location, or will we help shape the future of industry? Global data provides clear indications. According to the International Energy Agency’s (IEA) Global EV Outlook report, demand for electric vehicles has surged significantly in recent years. Even global electric car sales in early 2025 were recorded to have increased by more than 35 percent compared to the same period the previous year. This is not a fleeting trend that will disappear. It is a structural shift in the industry that will last. Japan, with all its reputation, certainly does not want to be left behind in this industrial structural shift. Japan has mature technology and a strong global industrial network, but it also needs something it lacks, namely access to raw materials and a continuously growing market, which is a strategic necessity. This is where Indonesia can play an important role. We have the world’s largest nickel reserves. The domestic market is also large and continuously developing. Not to mention the demographic bonus. The combination of these aspects is hard to ignore. In the realm of international relations, such conditions can be viewed through the lens of economic liberalism. Countries cooperate because they need each other. Interdependence is considered to create mutual benefits. In theory, all parties will benefit.