Indonesia-Japan Collaboration Drives Green Energy Transition, Coordinating Minister Airlangga Emphasizes the Importance of a Conducive Investment Climate

Jakarta, INTI - The collaboration between Indonesia and Japan continues to yield positive results in driving the green energy transition in Indonesia. This was demonstrated through a bilateral meeting led by Coordinating Minister for Economic Affairs Airlangga Hartarto with Japan's Minister of Economy, Trade, and Industry (METI) Saito Ken and Chairman of the Board of Directors of the Japan Bank for International Cooperation (JBIC) Tadashi Maeda. This meeting is part of the Asia Zero Emission Community (AZEC) Indonesia-Japan Joint Task Force, which has been established since last year.

Coordinating Minister Airlangga expressed his appreciation to the Japanese government for its support in developing green energy projects in Indonesia. He emphasized that this collaboration is crucial for encouraging private sector investment in order to accelerate the energy transition and achieve zero emissions in Indonesia by 2060. According to him, the AZEC forum has successfully identified several potential projects ready for further development.

One of the outcomes of the forum was the identification of potential projects categorized based on their readiness for implementation. Category I projects, such as the Muara Laboh Geothermal Project and the Legok Nangka Waste-to-Energy (WtE) Power Plant, are ready for execution. On the other hand, Category II includes projects currently in the feasibility study phase, such as the peatland management project and the Java-Sumatra transmission network. Additionally, there are around 74 MoUs and initiatives in Category III that still require further study.

However, Coordinating Minister Airlangga also reminded that challenges in developing these projects must be addressed. He reiterated Indonesia's commitment to continuously facilitating the debottlenecking process so that these projects can be implemented smoothly. According to him, the government will continue to strive to create a conducive investment climate for investors, ensuring that green energy projects can be realized soon.

Furthermore, Coordinating Minister Airlangga discussed investment opportunities in other potential projects, such as the production of Crude Coconut Oil (CCO) for Sustainable Fuel Aviation (SFA), geothermal power plant development, hydropower plants, green ammonia and green hydrogen production, as well as carbon capture, utilization, and storage (CCU/CCUS) technology. All of this demonstrates that Indonesia is serious about developing renewable energy and is committed to supporting sustainable green investment.

In closing the meeting, Coordinating Minister Airlangga expressed his hope that the AZEC collaboration will continue to grow and positively impact the development of renewable energy in Indonesia. He also hopes that through this collaboration, Indonesia and Japan can jointly create innovative, market-based financial instruments, such as carbon trading and emission trading systems, to support the financing of green projects in the future.

This event was also attended by Minister of Investment/Head of BKPM Rosan Roeslani and Deputy for International Economic Cooperation Coordination at the Coordinating Ministry for Economic Affairs Edi Prio Pambudi, who fully supported efforts to create a conducive investment climate for the development of green energy in Indonesia.