JAKARTA: Japan is seeking to work more closely with Indonesia on energy security, Prime Minister Sanae Takaichi said, as global concerns over supply disruptions intensify amid escalating geopolitical tensions.
“In light of the Iran situation, the strategic importance of resources and energy security is once again being recognised globally. Indonesia is a major resource-rich nation,” Takaichi said alongside President Prabowo Subianto after bilateral talks in Tokyo on Tuesday, as quoted by Reuters.
Her remarks set the tone for a series of agreements signed during Prabowo’s visit, where Jakarta and Tokyo inked 10 memoranda of understanding and strategic business deals worth a combined US$23.63bil.
The agreements were announced at the Indonesia-Japan Business Forum held at the Imperial Hotel Tokyo on Monday, spanning a wide range of sectors such as clean energy-based downstream projects, oil and gas exploration, geothermal development and financial inclusion.
Prabowo’s visit took place amid escalating tensions in the Middle East that have disrupted oil and gas flows through the Strait of Hormuz.
Japan has moved to safeguard supplies by ramping up coal use, tapping oil reserves and seeking alternative sources.
Indonesia remains a key partner, as the world’s largest thermal coal exporter and a major LNG supplier, with about a quarter of its shipments bound for Japan.
During the summit, both countries also pledged to push for de-escalation in the Middle East, putting forward their “best efforts to convince all parties to deescalate,” Prabowo said.
He also invited greater Japanese participation in Indonesia’s economy, including in critical minerals, rare earths, industrialisation 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 at the event on Monday. — The Jakarta Post/ANN
