Published on March 31, 2026, by Kumparan
Indonesia and Japan have agreed to economic cooperation worth USD 23.63 billion, equivalent to Rp401.71 trillion. Both parties have signed 11 Memoranda of Understanding (MoUs).
The MoUs cover the development of clean energy-based downstream projects such as methanol production from carbon emissions, exploration and development of the oil and gas sector, geothermal energy development, and strengthening the inclusive financial ecosystem and strategic investments.
“Essentially, this proves that international trust, specifically the Japanese government, both the Japanese government and Japanese entrepreneurs, in Indonesia remains strong and committed. In fact, this project, which will soon be implemented, is perhaps one of the largest ever undertaken,” said Danantara CEO Rosan Roeslani in Japan on Monday (30/3).
One of the MoUs highlighted by Rosan was the MoU with SMBC. There are MoUs with two SMBC entities, which include SMBC Aviation Leasing and SMBC Bank, each worth hundreds of millions of dollars.
“Then, there’s also a signing agreement with SMBC Aviation Leasing and Danantara for an investment of approximately USD 800 million. Pegadaian also received funding from SMBC Bank for approximately Rp5 trillion, or approximately USD 300 million,” Rosan said.
There’s also the Indonesia-Japan Strategic Beauty Partnership between PT Nose Herbal Indo and 2Way World, related to beauty products. According to Rosan, the investment value reaches USD 500 million.
In the energy sector, there’s a strategic collaboration for the development of the Abadi Gas Field in the Masela Block, Indonesia, between PT Pertamina (Persero) and INPEX. According to the Minister of Energy and Mineral Resources, Bahlil Lahadalia, the total investment reaches USD 20.9 billion.
“The total for the Masela Block is USD 20.9 billion. That’s the initial figure, but it’s likely that when geopolitical uncertainty arises, it will increase, but that will be after implementation,” he said.
Furthermore, there’s also an MoU on the Hululais Geothermal Power Plant Project between the Indonesian government and JICA. According to Bahlil, this is also in line with the future energy transition plan.
“We are pushing to utilize all of our potential energy sources other than fossil fuels. Why? Because we never know when this geopolitical situation will end. So, whether it’s geothermal, hydro, solar, or wind, as long as the technology is available and the price is efficient, we will promote it. This is part of our efforts to achieve this,” he said.
The following is a list of MoUs signed by Indonesia and Japan:
1. MoU on methanol production utilizing CO2 emissions from the PKT in Bontang, East Kalimantan, between PT Pupuk Kalimantan Timur and PT. Kaltim Methanol Industri;
2. MoU on cooperation in trade, commerce, and investment between the Indonesian Chamber of Commerce and Industry (KADIN Indonesia) and the Japan Chamber of Commerce and Industry;
3. Strategic cooperation for the development of the Abadi Gas Field in the Masela Block, Indonesia, between PT Pertamina (Persero) and INPEX;
4. MoU on potential partnership opportunities in the upstream oil and gas sector in Indonesia and Southeast Asia between PT Pertamina Hulu Energi and INPEX;
5. MoU on the development of the semiconductor ecosystem in Indonesia and Japan, electronic chip design and manufacturing, and artificial intelligence between PT Eblo Teknologi Indonesia and Hayashi Kinzoku Co., Ltd.;
6. MoU on various studies towards the realization of the Rajabasa Geothermal Power Plant Project between PT Supreme Energy Rajabasa and INPEX;
7. MoU between SMBC Indonesia and Pegadaian to contribute to the Indonesian gold ecosystem and financial inclusion between PT Pegadaian and PT Bank SMBC Indonesia;
8. MoU on the Indonesia-Japan Strategic Beauty Partnership between PT Nose Herbal Indo and 2Way World;
9. MoU on the Mandiri Aviation Leasing Fund between Danantara, Mandiri Investment Management, and SMBC Aviation Capital;
10. MoU on Strengthening the Cooperation Relationship between JETRO and PT Danantara Investment Management.
11. MoU on the Hululais Geothermal Power Plant Project between the Indonesian Government and JICA.