Coordinating Minister Airlangga and Japan Drive Green Investment for Energy Transition in Indonesia

Jakarta, INTI - In a significant step to accelerate energy transition and the green economy in Indonesia, Coordinating Minister for Economic Affairs Airlangga Hartarto, who serves as the Chairman of the Steering Committee of the Joint Task Force, led a crucial bilateral meeting between the Asia Zero Emission Community (AZEC) Indonesia-Japan Joint Task Force Steering Committee and Japan’s Minister of Economy, Trade, and Industry (METI) Saito Ken, along with the Chairman of the Board of Directors of the Japan Bank for International Cooperation (JBIC) Tadashi Maeda. This meeting underscored the strong commitment of both nations to achieving zero emissions through strategic collaboration.

During the meeting, Coordinating Minister Airlangga expressed his appreciation for the progress made since the AZEC Indonesia-Japan Joint Task Force was established last year. This forum successfully held six Expert Group Meetings aimed at identifying investment opportunities and finding collaborative solutions to the challenges faced in developing green energy projects. This demonstrates the seriousness of both countries in supporting the development of renewable energy and private sector investment.

According to Coordinating Minister Airlangga, several potential projects have been identified and categorized based on their readiness. Category I includes commercial projects ready for implementation, such as the Muara Laboh Geothermal Project and the Legok Nangka Waste-to-Energy (WtE) Power Plant. Category II covers projects that are ready for commercialization but are still in the feasibility study stage, such as the peatland management project and the Java-Sumatra transmission network project. Meanwhile, Category III encompasses around 74 Memoranda of Understanding (MoUs) and initiatives that require further study before they can be elevated to higher categories.

However, Coordinating Minister Airlangga also emphasized that the challenges in developing these projects should not be overlooked. The Indonesian government is committed to continuously facilitating the debottlenecking process to expedite the implementation of these projects. This is a tangible step towards creating a conducive investment climate, which is expected to attract more investors to participate in Indonesia's energy transition.

In addition, Coordinating Minister Airlangga highlighted Indonesia's commitment to supporting investment in other potential projects, such as the production of Crude Coconut Oil (CCO) for Sustainable Fuel Aviation (SFA), geothermal power plants, hydropower plants, green ammonia and green hydrogen production, as well as carbon capture, utilization, and storage (CCU/CCUS) technology. Coordinating Minister Airlangga hopes that this collaboration will pave the way for the development of green financing in Indonesia, whether through collaborative financial platforms or innovative financial instruments like carbon trading and emission trading systems.

At the end of the meeting, Coordinating Minister Airlangga expressed his hope that the AZEC collaboration will strengthen bilateral relations between Indonesia and Japan and create an investment climate conducive to the development of renewable energy in the future. With the support of various parties, Indonesia is optimistic about achieving zero emissions and becoming a model for other countries in the Asia region in terms of energy transition and the green economy.