On IPEF, RI-Japan Cooperation On Energy Transition To Digitalization

Coordinating Minister for the Economy Airlangga Hartarto in IPEF (Photo: dock. Coordinating Ministry for the Economy)

Coordinating Minister for Economic Affairs Airlangga Hartarto held a bilateral meeting with Minister Nishimura Yasutoshi, Minister of Economy, Trade and Industry (METI) Japan in a series of meetings with the Minister of Indo-Pacific Economic Framework for Prosperity (IPEF), on Tuesday, November 14.

Meanwhile, the bilateral meeting discussed various strategic sectors in the Indo-Pacific Economic Framework Ministerial Meeting (IPEF-MM) negotiations.

In addition, all IPEF member countries agreed to a substantial completion of Pillar II (Suppak Chain), Pillar III (Clean Economy) and Pillar IV (Addjust Economy).

Nishimura said Japan has a strong desire to resolve all IPEF pillars in substance, strengthen the industrial sector, and accelerate energy transitions according to the AZEC initiative.

"We hope that the two countries can overcome trade barriers including agro and fishery products," Nishimura explained.

Responding to Japan's commitment, Airlangga emphasized that Indonesia would look forward to cooperation with Japan in Pillar 2, Pillar 3, and Pillar 4 IPEF.

Meanwhile, one of the focuses of the Indonesian government is the supply chain of critical minerals, "President Joko Widodo has voiced the importance of strengthening the supply chain of critical minerals," Airlangga said in his statement Wednesday, November 15.

Airlangga invites Japan to invest in the development of new and renewable energy, electric vehicles (EV), and semi-conductor potential in Indonesia.

"Indonesia has great potential for New Renewable Energy, including solar panels energy, and geothermal energy, we invite Japan to invest in the sector," said Airlangga.

Airlangga conveyed that the discussion on digitalization was the focus, where Japan stated its openness to further discussions.

"Japan is very open to in-depth discussions regarding digital issues that are Indonesia's main focus," explained Airlangga.

This bilateral meeting ended with strong hopes of increasing economic and energy cooperation between Indonesia and Japan. On the other hand, Nishimura hopes that there will be a balance of access to the Indonesian fishery product market in Japan, and quality Japanese fishery products in Indonesia.