Jakarta—The Indonesian government has received funding commitments from Japan to support a number of energy transition projects, with a particular focus on the development of battery storage systems (BSS) and hydrogen for Eastern Indonesia. This support is part of 34 energy transition projects that Japan will assist within the Asia Zero Emission Community (AZEC) cooperation framework.
The Coordinating Minister for Economic Affairs, Airlangga Hartarto, revealed that Indonesia has the largest list of projects will receive funding support at this year’s AZEC meeting.
“Of the 78 projects supported by Japan, Indonesia secured 34 projects. This reflects Japan’s strong commitment to supporting the energy transition in Indonesia,” Airlangga said in an official statement at the launch of the AZEC Center in Jakarta on Wednesday, August 21.
According to Airlangga, this funding from Japan is not only limited to developing renewable energy, such as geothermal energy but also includes other strategic projects that can help accelerate Indonesia’s energy transition.
“Japan has shown great interest in geothermal projects in Indonesia. Of the 15 geothermal projects that have been supported, one of them is the additional Sarulla project, which has also been discussed,” he added.
During the AZEC meeting, several strategies to achieve Net Zero Emissions (NZE) were discussed, including integrated clean energy development and improved regional power grid connectivity.
“We will invest in new technologies such as hydrogen and ammonia, which utilise abundant renewable resources, to ensure a stable and environmentally friendly electricity supply,” Airlangga explained.
In addition, transforming the transportation sector by promoting next-generation vehicles and sustainable fuels is also a key focus.
“The government will support the development of the necessary infrastructure and policies that enable this transition in all urban and rural regions,” he added.
According to Airlangga, this initiative will drive efficiency across all sectors, from industrial processes to developing more sustainable systems.
“We need to set ambitious standards, provide incentives for improvement, and encourage innovation in energy-efficient technologies to achieve this goal,” he said.
Japanese funding supports renewable energy development and strengthens energy storage infrastructure in Eastern Indonesia. The Director General of New Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources, Eniya Listiani Dewi, explained that Eastern Indonesia still relies heavily on diesel-fueled power plants, which are quite expensive.
“The development of a Battery Storage System (BSS) and smart grid system is expected to produce more stable and efficient electricity in the region,” Eniya explained.
Japanese funding will also be used to develop three hydrogen and ammonia projects for the fertiliser industry and two Carbon Capture, Utilisation, and Storage (CCUS) projects.
“These developments will reduce dependence on diesel and improve energy efficiency in Eastern Indonesia,” Eniya added.
With the launch of the AZEC Center managed by the Economic Research Institute for ASEAN and East Asia (ERIA), it is hoped that this collaboration can significantly contribute to the development of decarbonisation policies and roadmaps in the Asian region, especially ASEAN. (Hartatik)
