Indonesia-US Collaboration: Advancing Technology and Renewable Energy

Jakarta, INTI - Coordinating Minister for Economic Affairs Airlangga Hartarto met with Under Secretary for Economic Growth, Energy, and the Environment, US Department of State, Jose Fernandez, on Monday (15/07) at the Office of the Coordinating Ministry for Economic Affairs. This bilateral meeting focused on collaboration efforts and US support in several sectors, including the semiconductor ecosystem, renewable energy (EBT), agriculture, and other potential areas of cooperation.

Collaboration in Agricultural Biotechnology

During the meeting, Under Secretary Fernandez expressed a desire for cooperation in agricultural biotechnology. Minister Airlangga stated that the Indonesian government is open to biotechnology collaboration with the US, particularly in rice, corn, and sugarcane commodities. This cooperation has already been initiated through biotechnology research between Indonesian universities, such as the Bogor Agricultural Institute (IPB), and universities in the US.

“The government has partnered with several universities to develop laboratories for various commodities such as rice, corn, and sugarcane, as well as the use of bioethanol for environmentally friendly fuels,” said Minister Airlangga. The government is also currently developing several food estates to ensure food security across Indonesia.

Utilization of Small Modular Reactor (SMR) Technology

Regarding the optimization of non-fossil energy sources for electricity generation, Minister Airlangga mentioned the use of Small Modular Reactor (SMR) technology as a power plant. “Considering Indonesia is a large archipelagic country, it requires electricity capacity that suits Indonesia's geographical conditions. Nuclear reactors produced through SMR modular technology can be utilized for this need,” added Minister Airlangga.

Under Secretary Fernandez stated that the US is ready to support the use of SMR and encourage the private sector to assist in developing and conducting feasibility studies for building such reactors in Indonesia. Several nuclear power plant operators have expressed interest in collaborating in Indonesia. Indonesia also has several nuclear laboratories for research and development activities.

Indonesia's OECD Accession Efforts

The Indonesian government has issued Presidential Decree Number 17 of 2024 concerning the National Team for Preparation and Acceleration of Indonesia's Membership in the Organisation for Economic Co-operation and Development (OECD). “Indonesia’s accession process is expected to support ongoing structural reforms in Indonesia and to enhance policies and regulations in line with best practices,” emphasized Minister Airlangga. Under Secretary Fernandez also expressed US government support and optimism that Indonesia could achieve full OECD membership in the near future.

Semiconductor Ecosystem Development

Regarding the development of the semiconductor ecosystem, the Indonesian government has established a Semiconductor Ecosystem Development Task Force through Coordinating Minister for Economic Affairs Decree Number 16 of 2024. This task force is collaborating with the OECD and the US Department of State to study Indonesia's semiconductor ecosystem. With Indonesia joining the OECD, it is expected to assist in developing this ecosystem further. Indonesia is anticipated to contribute to strengthening the global semiconductor supply chain through the International Technology Security and Innovation (ITSI) Fund. The government is also cooperating with the University of Arizona on semiconductor human resources development.

Appreciation for US Leadership in IPEF

Indonesia appreciates US leadership in the Indo-Pacific Economic Framework for Prosperity (IPEF). Indonesia is committed to negotiating all pillars in the IPEF, promoting flexibility in agreement completion, and signing agreements on Pillar II, III, IV, and the Overarching Agreement. Indonesia is in the process of ratifying these agreements. Several IPEF Cooperative Work Programs have been initiated to create investment opportunities and long-term partnerships to harness renewable energy potential in Indonesia.

At the end of the meeting, Minister Airlangga emphasized that Indonesia will continue to advance various current government priority programs, particularly Indonesia’s OECD accession efforts and energy transition toward Net Zero Emission (NZE). They also discussed critical minerals for the development of strategic minerals such as lithium, nickel, cobalt, and manganese. Additionally, discussions were held regarding the planned mineral forum, which could be developed into a supply chain.

The meeting was attended by the Deputy for International Economic Cooperation, the Deputy for Trade and Industry Cooperation, and the Minister of Economic Affairs’ assistance team.

We invite you to attend the Indonesia Technology and Innovation 2024 exhibition at JI-EXPO from August 12-14, 2024. INTI 2024 is Indonesia's largest technology and innovation exhibition. For more information, visit this link. With the latest innovations and technologies showcased at INTI 2024, it is hoped that the public will be inspired and motivated to continue developing digital skills and contributing to building a more advanced digital ecosystem in Indonesia.