Indonesia, Japan Ink Deal on Energy Transition

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 10 Januari 2022
Category: News
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The signing of MoC between Indonesian Government and Japanese Government, Monday (10/1) in Jakarta. (Photo: PR of Ministry of ESDM)

The Indonesians Government and the Japanese Government have signed a Memorandum of Cooperation (MoC) on the Realization of Energy Transitions in a bid to facilitate energy cooperation between the two countries.

The agreement was signed by Indonesian Minister of Energy and Mineral Resources Arifin Tasrif and the Japanese Minister of Economy, Trade and Industry (METI) Hagiuda Koich in Jakarta, Monday (10/01).

“I appreciate the initiative to implement this collaboration and the signing of the MoC. This is indeed an extraordinary effort from the Japanese Government,” said Indonesian Minister of Energy and Mineral Resources.

The implementation of the energy transition in Indonesia, Arifin added, needs support from international partners in a bid to achieve Net Zero Emissions (NZE) in 2060.

“We’d like to invite the participation of investors to support the program. Some of the policies that we implement are, among others, providing ease of doing business and preparing a draft Regulation of Minister of Energy and Mineral Resources related to new and renewable energy tariffs,” he explained.

Arifin went on to say that the energy sector will face big challenges in the future, one of which is the high dependence on fossil energy.

Therefore, this collaboration, he added, is expected to be a technology transfer process in order to realize the acceleration of the energy transition.

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

Meanwhile, the Japanese Minister of Economy, Trade and Industry (METI) Hagiuda Koichi said he welcomed this collaboration 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.

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

At the technical level, a joint study is currently underway between the Mitsubishi Indonesia Representative and the Research and Development Center for Oil and Gas “LEMIGAS” regarding the co-combustion of ammonia fuel in steam power plant.

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,” Haguida remarked. (PR of Ministry of ESDM/UN) (EST/EP)

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