Indonesia, Japan inks agreements for further cooperation in energy transition, infrastructure, trade 

20 Dec 2023

Bilateral Cooperation
Energy Transition
Infrastructure
Trade

The relationship between Indonesia and Japan will remain strong if the recent results from the back-to-back meetings between Indonesian President Joko “Jokowi” Widodo and Japan’s Prime Minister Fumio Kishida is any indication. 

 

Both leaders were in close contact during the ASEAN-Japan Partnership Commemorative Summit and the inaugural summit of the Asia Zero Emission Community (AZEC) in Tokyo, which were held throughout December 16 to 18.  

 

During these events, Indonesia secured Japan’s support for 24 energy transition projects, as well its commitment to continue funding for the expansion of the Jakarta mass rapid transit east-west line. Furthermore, both countries pledged to remove even more trade barriers, including by allowing greater access for Indonesian products in Japan and by improving relations in the banking sector. 

 

These agreements are part of the amended Indonesia-Japan Economic Partnership Agreement (IJEPA), which is set to be implemented by the first quarter of 2024, though the document still needs to be formally signed and ratified by their respective parliaments. 

 

The 24 energy transition projects entail collaborations between various entities, including state-owned power company PT PLN, state-owned chemical company PT Pupuk Indonesia, and the Nusantara Capital City Authority, to name a few. Areas of collaboration include training initiatives to promote energy transition, waste-to-energy conversion, and electric transmission development. 

 

“As deliverables, there are 69 energy transition collaborations under the AZEC framework, with 24 specifically dedicated to energy transition projects for Indonesia or involving Indonesian companies and Japanese counterparts,” said Indonesian Foreign Minister Retno Marsudi, as quoted by Katadata. 

 

In terms of food security, both nations agreed to harmonize agricultural standards in the effort to increase food supply and productivity, while further streamlining supply chain by developing better technology and by ensuring the supply of fertilizers. 

 

Additionally, the ASEAN-Japan partnership for digital transformation would be carried out through skills development program as well as by expanding connectivity infrastructure. The partnership also encourages the integration of micro, small and medium enterprises into the digital ecosystem. 

 

“ASEAN-Japan partnership must be oriented towards the future of the people and the region. To achieve this, cooperation must be inclusive, involving business, society, and the younger generation in building a sense of ownership,” said President Jokowi, as quoted by The Jakarta Post.