Indonesia-Japan Agree on Energy Transition Cooperation

Jakarta, MINA – Indonesia and Japan have agreed on a Memorandum of Cooperation (MoC) on the “Realization of Energy Transitions” to facilitate energy cooperation between the two parties to realize the energy transition.

The agreement was signed by the Minister of Energy and Mineral Resources (ESDM) of the Republic of Indonesia, Arifin Tasrif and the Minister of Economy, Trade and Industry (METI) of Japan, Hagiuda Koichi in Jakarta on Monday.

“Thank you for the initiative to implement this collaboration and sign the MoC. This is of course an extraordinary effort from the Japanese side,” said the Minister of Energy and Mineral Resources after the signing.

The implementation of the energy transition in Indonesia, continued Arifin, needs support from international partners for the target of achieving Net Zero Emissions (NZE) in 2060.

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“We invite the participation of investors so that they can support the Indonesian program. Dome of the policy tools that we carry out are to provide ease of doing business and prepare a Draft Regulation of the Minister of Energy and Mineral Resources related to EBT (new and renewable energy) tariffs,” he explained.

Arifin admits that the energy sector will certainly face big challenges in the future. There is still a tendency for high dependence on fossil energy. The existence of this collaboration is expected to be a technology transfer process in order to realize the acceleration of the energy transition.

“Indonesia and Japan can jointly develop Carbon, Capture, Utilization, and Storage (CCUS) technology by utilizing natural resources in Indonesia,” said Arifin.

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Meanwhile, the Japanese Minister of Economy, Trade and Industry (METI), Hagiuda Koichi, welcomed the cooperation to help accelerate the achievement of the energy transition process in Indonesia.

“Japan wants to help realize this target through the framework of the Asia Energy Transition Initiative,” said Haguida.

The details of the cooperation agreed in the MoC are the preparation of a roadmap for energy transition towards net-zero emissions based on their respective national targets, the development and deployment of technologies that contribute to a realistic energy transition, including hydrogen, ammonia fuel, carbon recycling, and CCS/CCUS, support in multilateral forums to accelerate technological cooperation that contributes to a realistic energy transition, and support for policy development, human resource development, and knowledge sharing on energy transitions and the technologies used.

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At the technical level, a joint study between the Mitsubishi Indonesia Representative and the Research and Development Center for Oil and Gas “LEMIGAS” is currently underway on co-combustion fuel ammonia in PLTU. The study, which is scheduled to be completed in January 2022, aims to assess the technical and economic feasibility of using ammonia to partially substitute coal so that the operational life of the power plant can be maintained.

“I am pleased to announce that Japan has become an important partner in Indonesia’s journey towards the energy transition. With real support, we believe in achieving NZE 2060, while maintaining energy security, access and affordability,” concluded Haguida. (T/RE1)

Mi’raj News Agency (MINA)