Irsyan Hasyim, Jakarta – The Indonesian Forum for the Environment (Walhi) has expressed concerns that the recent visit of Japanese Prime Minister Shigeru Ishiba to Indonesia may signal a revival of the Asia Zero Emission Community (AZEC) program, which has been criticized for its potential negative environmental impacts.
Prime Minister Ishiba's visit on Saturday, January 11, 2025, marked his first official trip abroad since assuming office in October 2024. During the visit, a joint press statement issued by Indonesian President Prabowo Subianto and Prime Minister Ishiba highlighted a renewed focus on energy decarbonization partnerships.
The partnerships specifically mention the development of the Muara Laboh Geothermal Power Plant (PLTP) in South Solok, West Sumatra. This project is one of three key priorities within the framework of the AZEC initiative for Indonesia-Japan energy transition cooperation.
Fanny Tri Jambore, Head of Walhi's Campaign Division, voiced concerns that the joint statement effectively resurrected the AZEC program, which faced strong opposition from civil society last August. A petition signed by 41 Indonesian civil society organizations had called for the cessation of the AZEC program, citing concerns that it would prolong reliance on fossil fuels.
"Civil society has demanded the halt of AZEC implementation in Indonesia, as it will only prolong the use of fossil energy," Fanny told Tempo on Monday, January 13, 2024.
In addition to the Muara Laboh PLTP, the Indonesia-Japan partnership, which also involves the development of hydrogen, ammonia, and biofuels, is considered by Walhi as a "false solution" that threatens the safety of the environment and communities. Concerns include potential human rights violations associated with these long-term energy projects.
According to Fanny, the land acquisition process for the Muara Laboh PLTP project has been characterized by coercion and discrimination. Furthermore, local farmers have experienced crop failures due to pollution from the project. The project is also suspected of depleting water sources and causing health issues due to elevated levels of toxic gases. Additionally, there are concerns about increased flood risks resulting from changes in the local landscape.
The power plant project in Muara Laboh has received investment from Japanese corporations, including Inpex and Sumitomo Corporation. The initial phase of construction was funded by the Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI). Future project phases are likely to also receive support from these investors.
Walhi has previously submitted demands to JBIC and NEXI urging them to cease support for the Muara Laboh PLTP development. However, Prime Minister Ishiba's recent statement has reinforced Japan's commitment to supporting the project.
Based on 2023 mining data, WALHI estimates that 1.3 million hectares of land in Indonesia are currently designated for mineral mining concessions. Critically, many of these concessions border or directly overlap with forested areas, potentially exacerbating deforestation rates. "This can trigger an increase in deforestation rates," Fanny emphasized.
Given the significant environmental and social risks associated with these projects, Walhi urges the Japanese and Indonesian governments to cancel all energy projects initiated under the AZEC framework. "We call upon both governments to support a rapid, fair, and equitable energy transition that prioritizes decarbonization," Fanny concluded.