Coordinating Minister for the Economy, Airlangga Hartarto, brought home a string of promising developments following his visit to Tokyo from May 7–9, 2025, including Japan's commitment to fund the Muara Laboh Geothermal Power Plant (PLTP) in Solok, West Sumatra − a flagship project under the Asia Zero Emission Community (AZEC) initiative.
“The Japanese government has allocated a special fund of USD 500 million for the AZEC project, which was officially launched on May 5, 2025,” Airlangga said on Friday, May 9, 2025.
The funding for the Muara Laboh PLTP is part of broader collaboration between Indonesia and Japan to achieve Indonesia’s Net Zero Emission (NZE) target by 2060. The two countries have already signed over 175 Memorandums of Understanding (MoUs), many of which are geared toward emissions reduction and the transition to clean energy.
During his visit, Airlangga also met with Japan’s Minister of Economy, Trade, and Industry, Muto Yoji. The meeting resulted in renewed commitments to strengthen cooperation in trade and investment. One of the key goals is to finalize the Indonesia-Japan Economic Partnership Agreement (IJEPA), which has already been ratified by the Japanese Parliament and is expected to be concluded in the second half of 2025.
Airlangga also held talks with the Chairman of Keidanren − Japan's most prominent business federation, representing 1,542 business entities, 106 industry associations, and regional economic organizations from all 47 Japanese prefectures. He noted that Keidanren continues to support Indonesia’s bid for accession to the OECD and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CP-TPP).
Additional discussions were held with the Japan Chamber of Commerce and Industry (JCCI), with ongoing projects, such as Jakarta’s MRT system, highlighted as examples of successful bilateral cooperation.
“The potential for future cooperation is wide open, especially in the sectors of manufacturing, renewable energy, and sustainable infrastructure,” Airlangga said.
Japan remains Indonesia’s sixth-largest foreign investor, with total investments reaching US$3.46 billion. As of Q4 2024, Japanese foreign direct investment in Indonesia has been concentrated in sectors, such as motor vehicles, transportation, logistics, telecommunications, chemicals, pharmaceuticals, machinery, electronics, and medical instruments.
In recognition of his contributions to strengthening Indonesia–Japan economic relations, Airlangga received the Order of the Rising Sun, Gold and Silver Star, one of Japan’s highest honors. The award was presented by Japanese Prime Minister Shigeru Ishiba in a ceremony that also honored former Indonesian Foreign Minister Marty Natalegawa.
This prestigious accolade not only highlights the enduring friendship between the two nations, but also serves as a symbolic gift ahead of Indonesia’s 80th Independence Day celebrations this year.
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