Jakarta, INTI - The governments of Indonesia and Japan continue to strengthen their economic partnership, particularly in the industrial sector, clean energy development, and the reinforcement of global supply chains. The collaboration is considered crucial for supporting economic growth while accelerating Indonesia’s national industrial transformation.
Japan’s Role in Strengthening Indonesia’s Automotive Industry
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that Japan has long played a significant role in the development of Indonesia’s automotive industry.
“In the automotive sector, Japan has been instrumental in building Indonesia’s automotive ecosystem. Today, Indonesia is not only a domestic market but has also evolved into a manufacturing base that exports vehicles to more than 70 countries,” Airlangga said during a meeting with Koichi Hagiuda, Executive Acting Secretary-General of the Liberal Democratic Party, in Tokyo on Wednesday, March 11, 2026 local time.
According to Airlangga, the government continues to maintain a favorable investment climate to enhance the competitiveness of Indonesia’s automotive industry. One of the key strategies is strengthening the component manufacturing sector, particularly tier-two and tier-three suppliers, to further solidify the domestic supply chain.
Expanding Collaboration in Clean and Renewable Energy
Beyond the industrial sector, cooperation between the two countries is also expanding in the field of clean energy. Japan has supported Indonesia’s efforts to develop more environmentally friendly fuels, including the implementation of the B40 biodiesel program and plans to introduce E20 fuel by 2028.
Collaboration in new and renewable energy is also being pursued through the Asia Zero Emission Community (AZEC) framework. Several projects have already reached the financing stage, including the Muara Laboh geothermal power plant in West Sumatra, the Legok Nangka waste-to-energy project in West Java, and a hydropower plant project in North Kalimantan.
During the meeting, both sides also discussed potential cooperation in strategic industries, including strengthening supply chains in advanced technologies such as semiconductors. Japan sees strong potential in Indonesia to support economic security through the development of these industries.
In addition, the role of Japan Organization for Metals and Energy Security (JOGMEC) is expected to further expand collaboration in resource and industrial development between the two countries.
The government believes that economic relations between Indonesia and Japan will continue to grow. The partnership is expected to open new investment opportunities, strengthen national industries, and generate broader economic benefits for society.
Conclusion
The expanding partnership between Indonesia and Japan highlights a shared commitment to strengthening industrial development and advancing clean energy initiatives. Through cooperation in automotive manufacturing, renewable energy projects, and strategic technologies, both countries aim to reinforce supply chain resilience and create new investment opportunities. This collaboration is expected to further support sustainable economic growth while enhancing Indonesia’s role in the global industrial ecosystem.
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