Indonesia Gandeng Japan Agrees To Run The Initial Stage Of The Energy Decarbonization Program

JAKARTA - The Indonesian government and Japan have agreed to carry out a decarbonization program for the energy sector through the cooperation or Memorandum of Understanding (MoU) between Indonesia and the Ministry of Energy and Energy and Industrial Technology Development Organization (NEDO) Japan.

The cooperation was signed by the Secretary-General of the Ministry of Energy and Mineral Resources, Dadan Kusdiana, and the President of NEDO, Yokoshima Naohiko, on the sidelines of the second meeting of the AZEC Ministerial Meeting in Jakarta, Wednesday, August 21, 2024.

"This MoU is an early stage to conduct a joint feasibility study. After that, the results will be discussed in AZEC with the government and METI. Furthermore, additional support from AZEC will be determined for the development of clean energy in Indonesia," said Dadan, Wednesday, August 21.

This was also emphasized by the Minister of Investment/Investment Coordinating Agency (BKPM) Rosan Roeslani regarding the role of AZEC as a breakthrough forum in overcoming emissions and climate change in the Southeast Asian Region.

"AZEC is a platform for countries in the region to demonstrate bold cooperation and action in reducing emissions and overcoming climate change in the energy sector through promotions for the development of Renewable Energy, Nabati Fuel and Sustainable Aviation Fuel, hydrogen, ammonia, carbon capture and storage, coal decarbonization, and Clean Zero Industry initiatives," said Roslan representing the Minister of Energy and Mineral Resources who was unable to attend.

In this agreement, the two countries agreed to encourage the decarbonization of the energy sector through the use of available energy sources, the application of clean energy technology, and energy efficiency.

Specifically, Indonesia and Japan will develop renewable energy, such as solar power, water, wind, and bioenergy such as biomass, bio-methana, and biofuel.

In addition, both will also produce hydrogen and build its supply chain, as well as optimize energy conservation technologies, including solar and diesel-based hybrid power plants, heat pumps, and the WHP (waste heat to power) cogeneration system.

This collaboration also includes the application of electrification technology in the industrial sector, development of smart network technology, and demand side management. In addition, Indonesia and Japan will also develop an Energy Services Company (ESCO) model, increasing the added value of coal for industrial purposes such as artificial graphite production and chemicals from coal to waste management in critical mineral processing.

For information, NEDO is a research and development institution under Japan's Ministry of Economy, Trade and Industry (METI), which was founded in 1980.

NEDO focuses on technological innovation to face global energy and environmental challenges. As an innovation accelerator, NEDO is working with industry, academics, and the government to formulate strategic steps and action plans of its research projects.

One of the projects in Indonesia that has NEDO support is the development of the first unit of green hydrogen production from PLTP Lahendong Binary with a capacity of 500 kW to the commercial stage. In addition, there is also an Energy Management System (EMS) demonstration project in Nunukan, Sebatik Island, which combines PLTS and PLT biomass with PLTG and PLTD already in the region.