Divya Kariza, Jakarta – The government has inked a memorandum of cooperation with Japan to strengthen their partnership in the critical minerals supply chain and to develop nuclear energy technologies.
The agreement was signed on Sunday by Energy and Mineral Resources Minister Bahlil Lahadalia and Japanese Minister of Economy, Trade and Industry (METI) Ryosei Akazawa. The bilateral meeting took place on the sidelines of the Indo-Pacific Energy Security Ministerial and Business Forum (IPEM) in Tokyo.
In the critical minerals sector, the agreement is expected to strengthen global supply chains for greater security and reliability, while supporting the development of clean energy technology using Indonesia's strategic mineral resources.
Minister Bahlil welcomed the partnership, highlighting the potential for joint management of Indonesia's vast mineral wealth.
"We are very open and happy to ask the Japanese government and our Japanese business friends to manage our critical minerals in Indonesia," Bahlil said, in a statement issued on Sunday.
Minister Akazawa stressed the urgency of international cooperation in the current volatile climate, noting that Japan maintains strategic energy reserves as a precautionary measure against supply disruptions.
"Amid the current global crisis, we must strengthen cooperation to maintain energy security," he said in the same statement.
The Japanese minister expressed appreciation for Indonesia's support regarding liquefied natural gas (LNG) exports, stressing Tokyo's commitment to completing joint projects, including the Legok Nangka waste-to-energy power plant as part of the two countries' strategic partnership.
Looking ahead, both nations also plan to deepen discussions on regional energy security, covering LNG and coal supply chains.
They also aim to accelerate projects under the Asia Zero Emission Community (AZEC) framework, including optimizing the Sarulla geothermal power plant.
These commitments are underpinned by Indonesia's vast resource potential, which Bahlil highlighted as a key driver for long-term collaboration.
"We know that Indonesia has 43 percent of the world's total nickel reserves, and we are also one of the largest players in bauxite, tin and copper. We have rare earth metals," he noted.
The International Energy Agency (IEA) has documented surging demand for rare earth elements, driven primarily by the EV and wind power sectors. This trend is expected to accelerate over the next five years in line with the global energy transition.
Brian Yuliarto, head of the Mineral Industry Agency (BIM), revealed on Feb. 9 that the government has identified eight prospective mining blocks for rare earth element deposits across Kalimantan, Sulawesi and the Bangka Belitung Islands.
He stated that these blocks, to be developed by the new state-owned mining company Perminas, hold "promising" reserves not only of rare earth elements but also of other strategic minerals such as tungsten and antimony.
However, experts note that limited reserves and a lack of local expertise in extracting and refining these minerals constrain the country's ability to disrupt global markets.
Beyond minerals, the Indonesia-Japan partnership also extends to next-generation power generation.
The nuclear energy component of the agreement focuses on technology development and utilization while maintaining high safety standards, positioning Indonesia to explore low-carbon baseload power options.
The partnership is expected to allow Indonesia to tap into Japan's expertise in low-carbon energy development.
Source: https://asianews.network/indonesia-japan-ink-strategic-pacts-on-critical-minerals-nuclear-power