Indonesia, Japan deepen partnership on energy transition, green industry and OECD accession

By Rara Suratmi

Indonesia and Japan have agreed to deepen cooperation in energy transition, electric vehicles, maritime development, trade and Indonesia's accession to the Organisation for Economic Co operation and Development (OECD), reinforcing a strategic partnership aimed at supporting sustainable economic growth and navigating global uncertainty.

The commitment was reaffirmed during a bilateral meeting in Paris on Wednesday, following President Prabowo Subianto's recent visit to Japan.

Coordinating Minister for Economic Affairs Airlangga Hartarto said Indonesia was seeking to accelerate national development through Japanese technology and sustainable investment, particularly in renewable energy and green industries.

Indonesia has invited Japanese automakers to help develop an integrated electric vehicle ecosystem based on the country's nickel battery industry, a move expected to create jobs and strengthen supply chains for both countries.

The two nations are also expanding cooperation in geothermal energy, human resource development, shipbuilding and civil nuclear energy, including studies on small modular reactor (SMR) technology. Japan is supporting efforts to improve the competitiveness of Southeast Asia's shipbuilding sector through an OECD peer review process, while Indonesia plans to build around 1,584 new vessels to support food security and fisheries.

Read also: Indonesia's renewable energy share rises to 18.3% in Q1 2026

On trade, both countries agreed to uphold a rules based international economic order and coordinate responses to rising protectionism and global steel overcapacity concerns.

Indonesia is targeting completion of the ratification of the revised Indonesia Japan Economic Partnership Agreement (IJEPA) in the second half of 2026, which is expected to expand market access and create more balanced trade opportunities.

Japan also reaffirmed support for Indonesia's goal of becoming a full member of the Organisation for Economic Co-operation and Development by 2028 and is expected to back Jakarta's bid to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

Airlangga said the partnership had evolved beyond traditional trade ties into a forward looking alliance focused on green industrial development, energy security and global economic integration.

Editing by Alexander Ginting