Indonesia establishes NRE cooperation with Japan


Jakarta, – The Indonesian government has established a collaboration with the Japan Bank for International Cooperation (JBIC) to develop new renewable energy (NRE).

Indonesian Coordinating Minister for Economic Affairs, Airlangga Hartarto, said that the two parties have discussed proposed activities for the Indonesia-Japan cooperation energy transition program, particularly as a follow-up to the formation of a task force for the energy and infrastructure transition.

“Indonesia has large reserves of raw materials that can be used as carbon capture, utilization, and storage (CCUS), and Japan will provide the latest technology in developing this sector in Indonesia,” Hartarto informed in a statement released on Tuesday.

The minister said that Indonesia and Japan have agreed that the task force would connect Indonesian and Japanese stakeholders in accelerating the development of the energy transition and its supporting infrastructure.

Minister Hartarto and JBIC Governor Hayashi Nobumitsu have also agreed on several cooperations that will be implemented immediately by the task force, including replacing steam power plants (PLTU) in Java to building a hydropower plant (PLTA) in Kalimantan, increasing the efficiency of geothermal power plants, increasing energy sources from green and blue ammonia, and cooperation on CCUS.

JBIC Governor Hayashi lauded the Indonesian government for its G20 presidency last year and ASEAN chairmanship this year.

He informed that JBIC will continue to support Indonesia’s energy transition and climate change mitigation efforts through the development of an environmentally friendly economy (green growth).

“We believe that Indonesia has a lot of potential in new energy resources, including biofuel. We can carry out many collaborations in this sector,” he stated.

He also expressed the hope that all activities related to the energy transition would be implemented immediately through the task force.

For the task force, the Indonesian government has assigned a team of experts consisting of officials from the Coordinating Ministry for Economic Affairs, related ministries/institutions, state-owned enterprises (SOEs), and the private sector. They have been tasked with immediately formulating activities that would be proposed for cooperation with Japan through JBIC.

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