Indonesia And Japan Strengthen Energy Sector Cooperation With New Memorandum Of Coordination

In a significant step towards bolstering bilateral relations, the Ministry of Energy and Mineral Resources (ESDM) of Indonesia and the Ministry of Economy, Trade and Industry (METI) of Japan have signed a Memorandum of Coordination (MoC) to enhance cooperation in the energy sector. The agreement was formalized at a ceremony in Jakarta, with Indonesian ESDM Minister Bahlil Lahadalia and METI Minister Ken Saito in attendance. The signing was facilitated by Minister of Investment/Investment Coordinating Board (BKPM) Rosan Roeslani.

The MoC aims to establish a robust framework for institutional cooperation between the two nations, focusing on mutual benefits and equality. Secretary General of the Ministry of ESDM, Dadan Kusdiana, highlighted the key areas of collaboration, which include developing an energy transition roadmap toward net zero emissions, advancing renewable energy technologies, and enhancing energy efficiency.

The cooperation will cover a range of initiatives, such as hydrogen and ammonia development, carbon recycling, and carbon capture and storage (CCS/CCUS). Additionally, the agreement seeks to improve energy security through collaborative efforts in oil, gas, and electricity sectors. It also emphasizes policy development, knowledge sharing, and support for multilateral technology cooperation.

“This Memorandum of Cooperation is expected to stimulate collaboration between business entities from both countries, encouraging energy investment promotion, joint projects, and technology exchange,” Dadan Kusdiana said.

Minister Rosan Roeslani underscored the importance of this collaboration, noting the signing of 21 memorandums of understanding on various project cooperations between Indonesia and Japan. He expressed optimism about continued support from the private sector in these initiatives.

To further facilitate discussions and implementation, the two countries plan to establish an Energy Forum. This forum will convene periodically in either Japan or Indonesia and report on the progress of the MoC to ministerial-level meetings, including the Indonesia-Japan Ministerial Strategic Dialogue.

The MoC marks a pivotal moment in the strengthening of Indonesia-Japan relations in the energy sector, paving the way for enhanced collaboration and innovation in clean energy technologies.

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