Tokyo Economic Diplomacy: President Prabowo Witnesses 10 Indonesia-Japan MoUs Worth Rp384.2 Trillion
President of the Republic of Indonesia Prabowo Subianto is strengthening bilateral relations between Indonesia and Japan through enhanced large-scale investment cooperation. At the Indonesia-Japan Business Forum held in Tokyo on Monday (30/3), the President witnessed the announcement of 10 strategic Memorandums of Understanding (MoUs) with a total value reaching $22.6 billion or equivalent to Rp384.2 trillion.
These agreements cover various crucial sectors, ranging from clean energy downstreaming, oil and gas exploration, semiconductor development, to strengthening inclusive financial ecosystems.
Cabinet Secretary Teddy Indra Wijaya stated that this momentum serves as a strong signal of the high confidence of Japanese business towards Indonesia’s economic prospects under President Prabowo’s leadership.
“This moment becomes a concrete symbol of collaboration between the two countries while demonstrating that the direction of Indonesia’s economic transformation is increasingly modern, competitive, and sustainable,” said Teddy in his official statement.
One of the main points in these agreements is the clean energy-based downstreaming project, including methanol production from carbon emissions in Bontang, East Kalimantan, involving PT Pupuk Kalimantan Timur and PT Kaltim Methanol Industry.
Details of the 10 Strategic Indonesia-Japan Cooperations:
The following is a list of the major agreements announced at the forum:
Gas & Emissions Downstreaming: CO2 emissions-based methanol production in Bontang (Pupuk Kaltim & PT Kaltim Methanol Industry).
Trade Partnership: Investment and trade cooperation between Kadin Indonesia and Japan Chamber of Commerce and Industry.
National Strategic Project: Development of the perennial gas field in the Masela Block between Pertamina and INPEX.
Upstream Oil and Gas Expansion: Upstream sector partnership in Indonesia and Southeast Asia (Pertamina Hulu Energi & INPEX).
Future Technology: Development of semiconductor ecosystem, chip design, and AI (PT Eblo Teknologi Indonesia & Hayashi Kinzoku Co., Ltd.).
Renewable Energy: Feasibility study for the Rajabasa Geothermal Power Plant project (PT Supreme Energy Rajabasa & INPEX).
Inclusive Finance: Strengthening the gold ecosystem and financial inclusion (PT Pegadaian & PT Bank SMBC Indonesia).
Beauty Industry: Strategic Beauty Partnership (PT Nose Herbal Indo & 2Way World).
Aviation Funding: Establishment of Mandiri Aviation Leasing Fund involving Danantara, Mandiri Investment Management, and SMBC Aviation Capital.
Investment Partnership: Strengthening strategic relations between JETRO and PT Danantara Investment Management.
The emergence of Danantara’s name in several MoU points (related to Aviation Leasing and partnership with JETRO) marks the central role of this new Indonesian investment management institution in attracting foreign capital and managing state strategic assets to accelerate economic growth.
This forum reaffirms Indonesia’s position as a primary investment destination in Southeast Asia, particularly in supporting energy transitions and high-level technological independence.