Indonesia and Japan are strengthening their strategic collaboration in renewable energy and environmentally sustainable infrastructure through the Asia Zero Emission Community (AZEC) framework. A prominent example of this partnership is the Muara Labuh Geothermal Power Plant (PLTP) in South Solok, West Sumatra.
The partnership was formalized in May during a signing ceremony at the Coordinating Ministry for Economic Affairs office in Jakarta, attended by Indonesia’s Coordinating Minister for Economic Affairs and the former Japanese Prime Minister, who participated in his capacity as the Japanese Prime Minister’s Special Envoy to the Asia Zero Emission Community (AZEC).
The coordinating minister announced that the 80-megawatt Muara Labuh PLTP project reached financial close on April 18, 2025, and is set to begin construction. Highlighting the collaboration on the Muara Labuh PLTP, the coordinating minister emphasized the ongoing strengthening of trade and investment ties between the two countries.
The coordinating minister noted that Japan is currently Indonesia’s sixth-largest investor, involved in more than 12,000 strategic projects. In 2024, bilateral trade between Indonesia and Japan reached USD 35 billion, while Japanese investment rose by 52% from 2021 to USD 3.5 billion. He also expressed appreciation for Japan’s support in promoting green energy and technological innovation.
During the meeting, the coordinating minister highlighted Indonesia’s key role as Japan’s primary partner in the AZEC. He noted that 175 MoUs have already been signed between businesses from both countries. The coordinating minister affirmed the government’s commitment to accelerating the implementation of low-emission projects by addressing challenges through cross-sector collaboration and public-private partnerships. He also emphasized ongoing efforts to advance other AZEC initiatives, including the Legok Nangka waste-to-energy plant, sustainable aviation fuel development, the Sarulla geothermal power plant, and the Java-Sumatra transmission network.
The meeting featured a signing ceremony for a cooperation agreement between PT Supreme Energy Muara Labuh and the Japan Bank for International Cooperation (JBIC). According to the coordinating minister, the deal represents a key milestone in advancing the Muara Labuh geothermal power plant project, which is scheduled to begin commercial operations in the first quarter of 2027.
(Source: Tempo)
