Ricki Putra Harahap, Tokyo – Indonesian President Prabowo Subianto oversaw the signing of $22.6 billion (Rp 380 trillion) worth of investment commitments between Indonesian and Japanese companies on Monday, as Jakarta steps up efforts to attract foreign capital and accelerate industrial transformation.
The agreements, signed during the Indonesia – Japan Business Forum in Tokyo, span energy, manufacturing, finance, and technology, underscoring deepening economic ties between Southeast Asia's largest economy and one of its longest-standing investors.
Speaking at the forum, Prabowo pledged to personally address investor concerns, offering rare direct access to the presidency to resolve bureaucratic bottlenecks.
"If you have problems, you can report directly to me," he said, adding that complaints could also be channeled through business associations such as Japan External Trade Organization (JETRO) and Keidanren.
The Indonesian government has established a dedicated task force to streamline regulations and eliminate unnecessary procedures, part of a broader push to improve the investment climate. The initiative reflects Prabowo's hands-on approach to economic governance, aimed at reassuring foreign investors wary of red tape.
Indonesia's foreign policy stance – summarized by Prabowo as "a thousand friends are too few, one enemy too many" – also featured in his pitch. He highlighted the country's non-aligned position as a strategic advantage amid rising geopolitical tensions, offering stability for global investors navigating an increasingly fragmented world.
"Indonesia is an open economy. We depend on trade and strong partnerships," Prabowo said, stressing that Jakarta's non-bloc policy allows it to maintain balanced relations with major powers.
The deals include several high-profile projects, notably the development of the Masela gas block involving state oil and gas company Pertamina (Persero) and Japan's INPEX Corporation, a long-delayed venture seen as critical to Indonesia's energy security.
In the green economy space, state-owned fertilizer company Pupuk Kalimantan Timur agreed to collaborate on methanol production using captured carbon emissions in Bontang, reflecting Jakarta's push toward low-carbon industrialization.
Technology cooperation also featured prominently, with partnerships on semiconductor ecosystems, chip design, and artificial intelligence between Indonesian and Japanese firms, including Hayashi Kinzoku Co., Ltd.
Meanwhile, financial sector agreements included collaboration between sovereign wealth fund Danantara Indonesia investment unit's Danantara Investment Management and SMBC Aviation Capital on aviation leasing funds, as well as broader cooperation with JETRO to support investment flows.
Additional deals covered geothermal power development, upstream oil and gas exploration, trade facilitation between chambers of commerce, and initiatives to strengthen Indonesia's gold and financial inclusion ecosystem.
The forum, held at Tokyo's Imperial Hotel, highlighted Japan's enduring role in Indonesia's economic development. Japanese companies have long been major investors in sectors ranging from automotive manufacturing to infrastructure.
Prabowo acknowledged that legacy, urging Japanese businesses to expand their presence as Indonesia moves up the value chain through downstream processing, renewable energy, and digitalization.
"We are not only offering opportunities but real partnerships," he said.
The list of memorandums of understanding (MoUs) announced is as follows:
- An MoU on methanol production utilizing CO2 emissions from PKT in Bontang, East Kalimantan, between Pupuk Kalimantan Timur and Kaltim Methanol Industri;
- An MoU on cooperation in trade, commerce, and investment between Indonesia's Chamber of Trade and Commerce (Kadin) and Japan Chamber of Commerce and Industry;
- A strategic cooperation agreement for the development of the Abadi gas field in the Masela Block, Indonesia, between Pertamina (Persero) and INPEX Corporation;
- An MoU on potential partnership opportunities in the upstream oil and gas sector in Indonesia and Southeast Asia between Pertamina Hulu Energi and INPEX;
- An MoU on the development of a semiconductor ecosystem in Indonesia and Japan, including electronic chip design and manufacturing as well as artificial intelligence, between Eblo Teknologi Indonesia and Hayashi Kinzoku Co., Ltd.;
- An MoU covering various studies toward the realization of the Rajabasa geothermal power plant project between Supreme Energy Rajabasa and INPEX;
- An MoU between SMBC Indonesia and Pegadaian to contribute to Indonesia's gold ecosystem and financial inclusion, alongside cooperation between Pegadaian and Bank SMBC Indonesia;
- An MoU on the Indonesia – Japan Strategic Beauty Partnership between Nose Herbal Indo and 2Way World;
- An MoU on the Mandiri Aviation Leasing Fund between Danantara Investment Management, Mandiri Investment Management, and SMBC Aviation Capital;
- An MoU on strengthening cooperation between Japan External Trade Organization and Danantara Investment Management.