Indonesia, Japan Sign Energy Transitions Cooperation

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 16.Pers/04/SJI/2022

Date: 10 January 2022

Indonesia, Japan Sign Energy Transitions Cooperation

The Indonesian Minister of Energy and Mineral Resources (EMR), Arifin Tasrif, and the Japanese Minister of Economy, Trade, and Industry (METI), Koichi Hagiuda, on Monday (10/1), signed a Memorandum of Cooperation (MoC) on "Realization of Energy Transitions".

"Thank you for taking the initiative in promoting the cooperation and MoC signing. This is an extraordinary effort from the Japanese side," said Arifin after the signing which took place in the Heritage Building of the Ministry of EMR in Jakarta.

Arifin went on to say that Indonesia's energy transitions need to be supported by international partners to meet the Net Zero Emission (NZE) target by 2060. "We invite investor participation to support Indonesia's program. Several policy tools that we use are, among others, providing ease of doing business and formulating a draft ministerial regulation on new, renewable energy tariffs," explained Arifin.

Arifin admitted that the energy sector would definitely face big challenges in the future because of the high dependence on fossil energy. Therefore, this collaboration is expected to be a forum for the technology transfer process to accelerate the energy transition. "Indonesia and Japan can jointly develop Carbon Capture, Utilization, and Storage (CCUS) technology by utilizing natural resources in Indonesia," said Arifin.

The Minister of Economy, Trade, and Industry (METI), Koichi Hagiuda, welcomed the cooperation to accelerate the energy transition process in Indonesia. "Japan wants to help realize this target under the Asia Energy Transition Initiative framework," said Haguida.

The partnership agreed in the MoC includes the preparation of an energy transition roadmap towards net-zero emissions based on the 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 for efforts in multilateral fora 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.

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 of fuel ammonia in coal-fired power plants. The study, which is scheduled for completion in January 2022, aims to assess the technical and economic feasibility of using ammonia to partially substitute coal so as to maintain the operational life of coal power plants.

"It is my pleasure to convey that Japan has become an important partner for Indonesia's journey towards the energy transition. With real support, we believe we can achieve NZE by 2060, while maintaining energy security, access, and affordability," Haguida concluded. (IY)

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