Indonesia is focusing on attracting more Japanese investment in key sectors. This week, President Prabowo Subianto met with members of the Japan-Indonesia Association (Japinda) and the Japan Jakarta Club (JJC) at the Presidential Palace. They discussed ways to strengthen economic ties between the two countries.
Strengthening economic co-operation
The discussions concentrated on increasing Japanese business involvement in Indonesia’s automotive, energy, agriculture, and infrastructure sectors. Airlangga Hartarto, the Minister of Economic Affairs, announced that Toyota Tsusho, the trading arm of Toyota Group, plans to support Indonesia’s automotive industry. The company aims to develop a national car and open new international markets for Indonesian vehicles.
In addition, Sumitomo Forestry shared its plans to expand its operations in agriculture and forestry across Indonesia. The company currently manages peatlands in West Kalimantan for reforestation and ecosystem restoration. It has now committed to restoring forests in Central Kalimantan and improving sustainable land management practices.
Key energy and infrastructure projects
The meetings also focused on energy investment. The $21 billion Inpex Masela gas project is almost complete in its technical design phase. The project, which has been in development for over 20 years, will feature advanced carbon capture and storage (CCS) and carbon capture, utilisation, and storage (CCUS) technologies. Investment Minister Rosan Roeslani confirmed that construction will begin next year.
Furthermore, President Prabowo invited Japanese companies to participate in the Great Giant Seawall project. This 40-kilometre flood barrier will protect Jakarta from rising sea levels. It may eventually extend up to 600 kilometres. Prabowo encouraged Japanese construction firms to contribute to this important initiative.
Broader collaborations in education and sustainability
The discussions also explored collaboration in healthcare, education, and environmental sustainability. President Prabowo urged Japanese universities to set up campuses in Indonesia and expand student exchange programmes to strengthen educational ties.
During a luncheon at the State Palace, Anindya Bakrie, Chair of the Indonesian Chamber of Commerce and Industry, pointed out that Japan is looking for partnerships with countries that have growing, youthful populations to address its ageing demographic.
“Indonesia presents a golden opportunity under President Prabowo’s leadership. Japan sees Indonesia as a trusted partner with a long history of mutually beneficial relations,” he said.
