Coordinating Minister for the Economy, Airlangga Hartarto, held a meeting on February 21, 2025 with Tadashi Maeda, Chairman of the Japan Bank for International Cooperation (JBIC) and Takio Yamada, Japanese Ambassador for the promotion of the Asia Zero Emission Community (AZEC), discussing Japan-Indonesia cooperations on energy transition and green economy.

Airlangga said that the AZEC initiative was one of the highlights of the meeting between President Prabowo Subianto and Prime Minister Ishiba Shigeru last January.

"We need to immediately realize the commitment of the two heads of state regarding the development and implementation of leading projects within the AZEC framework, especially the Muara Laboh Geothermal Power Plant," Airlangga said as quoted by Katadata.co.id.

The meeting also discussed the Expert Group Meeting report on the categorization of AZEC development projects in Indonesia. Category I projects (commercial projects ready to be implemented) include the Muara Laboh Geothermal Power Plant (PLTP) in Solok Selatan Regency, West Sumatra; the Legok Nangka Waste Power Plant (PLTSa) in Bandung Barat Regency, West Java; and the Development of Sustainable Aviation Fuel (SAF).

Meanwhile, Category II Projects (potential projects that are ready to be commercialized but are still in the feasibility study stage) include the Kayan Hydroelectric Power Plant (PLTA) in North Kaliamantan, peatland management and the Java-Sumatra electricity transmission network.

In Category III (still in the pilot project and initiative stage) there are new technologies for geothermal energy, green ammonia production, hydrogen development for transportation and development of bio-fuel/bio-avtur production.

"We will try to upgrade projects in categories III and II to category I so that the benefits for the economy can be seen immediately," Airlangga said on Monday, February 24, 2025.

Tadashi Maeda conveyed the progress of JBIC's cooperation in Indonesia. One of them is the energy transition cooperation with the Indonesian state power utility company PT PLN in the development of the Java-Sumatra transmission. He also cited Japan's new renewable energy strategic plan to meet new renewable energy needs until 2040.

"Japan expects Indonesia's support for the implementation of the strategic plan and more broadly to meet the needs of new and renewable energy for both countries," Maeda said.

Meanwhile, Takio Yamada appreciated the Indonesian government for supporting AZEC cooperation in achieving the common goal of net-zero emission (NZE). Yamada also emphasized the next Ministerial Meeting to encourage the realization of AZEC cooperation projects.

In addition, Airlangga welcomed the initiative and encouraged the implementation of projects that had been carried out so that they could be implemented immediately and start the production stage.

PLTS cooperation offer

Airlangga also offered cooperation on the Solar power plant (PLTS) that is being developed in Riau, the ASEAN Powergrid transmission and the development of energy from palm oil as aviation fuel.

Regarding the challenges in project development, Airlangga reiterated Indonesia's commitment to continue facilitating the debottlenecking process to accelerate project implementation.

"Indonesia hopes for continued improvement and development in AZEC projects, one of which is the Legok Nangka PLTSa project which can be used as a pilot project," he said.