Enviro News Asia, Jakarta – The Governments of Indonesia and Japan continue to strengthen their strategic collaboration in sustainable energy and environmentally friendly infrastructure development, particularly through the Asia Zero Emission Community (AZEC) cooperation framework.
On Monday (May 5, 2025), Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, held a meeting with Member of Parliament and former Japanese Prime Minister (2021–2024), as well as Special Envoy of the Japanese Prime Minister for AZEC, H.E. Fumio Kishida.
The meeting followed up on a previous discussion between President Prabowo and Prime Minister Shigeru Ishiba. This bilateral meeting reaffirmed the importance of the Indonesia–Japan partnership in creating a green, equitable, and resilient future amid global economic dynamics.
In terms of trade and investment relations, both countries have continued to show significant growth. In 2024, the bilateral trade volume reached USD 35 billion, and Japanese investment in Indonesia totaled USD 3.5 billion—a 52% increase compared to 2021.
Japan is currently Indonesia’s sixth-largest source of investment, with over 12,000 projects in various strategic sectors. “This level of investment reflects the trust and confidence that Japanese companies have in Indonesia,” said Minister Airlangga in his official statement on Monday (May 5, 2025).
Minister Airlangga also expressed his appreciation to the Japanese Government for its role in advancing green energy, encouraging innovation, and promoting broader economic resilience.
“Indonesia greatly values Japan’s commitment and leadership in sustainable development, particularly through initiatives such as AZEC and other bilateral collaborations,” he said.
“This remarkable growth is a reflection of the shared commitment of both countries to fostering mutually beneficial economic cooperation, paving the way for shared prosperity,” he added.
The bilateral meeting reaffirmed Indonesia’s status as a priority partner for Japan under the AZEC framework, with 175 Memorandums of Understanding (MoUs) already signed by business actors from both countries.
The governments of Indonesia and Japan remain committed to advancing the development of low-emission projects under these MoUs, including efforts to resolve implementation barriers through cross-sectoral approaches and robust public-private partnerships.
“One project that could serve as a milestone for the successful implementation of AZEC is the Muara Laboh Geothermal Power Plant (PLTP) in Solok, West Sumatra.
This 80 MW project reached financial close on April 18, 2025, and construction of the plant will soon commence,” continued Minister Airlangga.
The occasion also featured a signing ceremony involving PT Supreme Energy Muara Laboh and the Japan Bank for International Cooperation, marking a key step in the development of the Muara Laboh Geothermal Power Plant.
This clean energy project is expected to begin commercial operations in the first quarter of 2027.
Additionally, the government continues to push for the acceleration of debottlenecking several AZEC projects such as the Legok Nangka Waste-to-Energy project, Sustainable Aviation Fuel, the Sarulla Geothermal Power Plant, and the Java–Sumatra Transmission Network Project to ensure their readiness for commercialization.
These projects are expected to reflect the two countries’ commitment to accelerating clean energy transition and green economic development.
“This visit by the former Prime Minister underscores the strong commitment of Indonesia and Japan to work together toward a sustainable and low-carbon future,” concluded Minister Airlangga.
Also present at the event were Deputy Minister of Energy and Mineral Resources (ESDM) Yuliot, Director General of New, Renewable Energy, and Energy Conservation at the Ministry of Energy and Mineral Resources Eniya Listiani Dewi, Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso, and various other officials. **
