Indonesia and Japan Deepen Strategic Alliance in Clean Energy and Infrastructure

5 hours ago 3

TEMPO.CO, Jakarta - The governments of Indonesia and Japan are deepening their strategic cooperation in new and renewable energy (EBT) and environmentally sustainable infrastructure development through the Asia Zero Emission Community (AZEC) framework. A key project exemplifying this collaboration is the Muara Labuh Geothermal Power Plant (PLTP) located in South Solok, West Sumatra.

The strengthening of this partnership was formalized through a signing ceremony between Coordinating Minister for Economic Affairs Airlangga Hartarto and former Japanese Prime Minister Fumio Kishida at the Coordinating Ministry for Economic Affairs office in Jakarta on Monday, May 5, 2025. In this context, Kishida is serving as the Special Envoy of the Japanese Prime Minister to AZEC.

Airlangga announced that the 80-megawatt Muara Labuh PLTP project achieved financial close on April 18, 2025, and is poised to enter the construction phase. Reflecting on the collaborative efforts at the Muara Labuh PLTP, Minister Airlangga noted the continued growth of trade and investment relations between the two nations.

"In 2024, the value of Indonesia-Japan trade reached US$35 billion, and Japanese investment increased by 52 percent from 2021 to US$3.5 billion," Airlangga stated in a written press release on Monday, May 5, 2025.

Airlangga highlighted that Japan is currently Indonesia's sixth-largest investor, with over 12,000 strategic projects. He also expressed appreciation for Japan's support in the advancement of green energy and technological innovation.

"We deeply appreciate Japan's commitment and leadership in fostering sustainable development. This reflects the shared aspiration of both countries to cultivate mutually beneficial economic cooperation," he affirmed.

During the meeting, Airlangga emphasized Indonesia's pivotal role as Japan's primary partner within AZEC. He noted that 175 Memoranda of Understanding have already been signed by business entities from both countries.

Furthermore, he stated the government's commitment to accelerating the realization of these low-emission projects by addressing various challenges through cross-sector collaboration and public-private partnerships. The Golkar Party politician added that the government is also actively promoting the advancement of other AZEC projects, including the Legok Nangka waste-to-energy plant, the development of sustainable aviation fuel, the Sarulla geothermal power plant, and the Java-Sumatra transmission network.

"These projects show the seriousness of Indonesia and Japan in expediting the transition to clean energy and green economic development. The visit of former Prime Minister Kishida reinforces our commitment to continued collaboration for a low-carbon future," he asserted.

The meeting also included a signing ceremony for a cooperation agreement between PT Supreme Energy Muara Labuh and the Japan Bank for International Cooperation (JBIC). Airlangga explained that this agreement marks a significant step in the development of the Muara Labuh geothermal power plant project, which is targeted for commercial operation in the first quarter of 2027.

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