Japan is seeking closer cooperation with Indonesia on energy security, Prime Minister Sanae Takaichi said, as global concerns over supply disruptions intensify amid rising geopolitical tensions.
“In light of the Iran situation, the strategic importance of resources and energy security is once again being recognized globally. Indonesia is a major resource-rich nation,” Takaichi said alongside President Prabowo Subianto after bilateral talks in Tokyo on Tuesday, according to Reuters.
Her remarks followed the signing of 10 memoranda of understanding (MoUs) and strategic business deals worth US$23.63 billion during Prabowo’s visit. The agreements were announced at the Indonesia–Japan Business Forum at the Imperial Hotel Tokyo on Monday, covering clean energy downstream projects, oil and gas exploration, geothermal development, and financial inclusion.
The visit took place amid heightened tensions in the Middle East that have disrupted oil and gas flows through the Strait of Hormuz. Japan has responded by strengthening energy security through increased coal use, tapping strategic oil reserves, and diversifying supply sources. Indonesia remains a key partner as the world’s largest thermal coal exporter and a major LNG supplier, with around a quarter of its exports going to Japan.
Both countries also pledged support for de-escalation efforts in the Middle East. Prabowo said they would “make their best efforts to convince all parties to de-escalate,” while encouraging greater Japanese involvement in Indonesia’s economy, including critical minerals, rare earths, industrialization, and nuclear energy.
“If there’s a real partnership between the Japanese economy, Japanese industry, and Indonesia, both our peoples will benefit. When both our peoples benefit, this will be a pillar of peace and stability,” Prabowo said.
A major portion of the agreements focuses on energy cooperation involving Japan’s INPEX. These include a partnership between Pertamina and INPEX to develop the Abadi Gas Field in the Masela Block, and an MoU between Pertamina Hulu Energi and INPEX for upstream oil and gas exploration in Indonesia and Southeast Asia.
Another deal between Supreme Energy Rajabasa and INPEX will advance studies for a geothermal project, supporting Indonesia’s renewable energy expansion. Energy Minister Bahlil Lahadalia said he had been instructed to accelerate the Masela Block project, valued at around US$20 billion plus US$1 billion for carbon capture and storage. He noted rising geopolitical risks could increase costs.
Beyond fossil fuels, Indonesia is pushing energy diversification. “Whether geothermal, hydropower, solar, or wind—if it is cost-efficient, we will promote it,” Bahlil said.
Other agreements include a methanol project with Sojitz, cooperation between KADIN and the Japan Chamber of Commerce and Industry, semiconductor and AI collaboration between PT Eblo Teknologi Indonesia and Hayashi Kinzoku, and financial sector deals involving Pegadaian, SMBC Indonesia, Danantara, and SMBC Aviation Capital. Additional cooperation covers JETRO with Danantara Investment Management, a geothermal project in Hululais supported by JICA, and a tourism partnership between Indonesia and Japan focusing on promotion, training, and industry collaboration.
March 31, 2026, The Jakarta Post
(https://www.thejakartapost.com/business/2026/03/31/ri-japan-seek-deeper-energy-ties-after-23-6b-in-deals.html)