22 May 2023
Mitigation of climate
change at the country level shall be implemented with a balanced effort
between ensuring energy
security, maintaining and strengthening industrial competitiveness, and
realizing economic growth in accordance with the
stages of development and industrial structure in each country.
Crucial to achieving a
realistic “multi-path energy transition” by balancing economic growth and a
stable energy supply
is pursuing multiple technologies across multiple fronts. This idea,
“multi-path energy transition”, is endorsed by
various occasions around ASEAN energy fora[1],[2]. Concretely, efforts are
needed in broad fields, such as the use of
renewable energy, increasing energy efficiency, using zero-emission fuels
such as ammonia, decarbonizing fossil fuels,
electrifying vehicles, and using effective resources.
Japan has been trying to
balance decarbonization and energy security, including a stable supply of
electricity with its
Net-zero target in 2050. Japan and Indonesia have many similarities, such as
in terms of geographical conditions and
energy composition so that many of Japan's efforts towards decarbonization
have been effective in Indonesia as well.
JETRO, in cooperation
with Jakarta Japan Club, Japanese chamber of commerce in Indonesia, is
working toward stronger
cooperation between Indonesian and Japanese Industry in various sectors.
From 2022, JJC and JETRO conducted the
comprehensive survey on Japanese companies’ activity on decarbonization in
Indonesia. According to the latest result[3],
there are165 companies are implementing 457 projects all around Indonesia,
starting from solar power projects, hydro
power, geothermal, Ammonia, CCUS, automobile electrification, battery power
storage, decarbonization of fossil fuels,
and energy conservation. In addition to existing projects, Japanese
companies are ready to conduct further cooperation
with Indonesian Industry in all technologies.
JETRO and JJC also
published a series of policy recommendations to government of Indonesia such
as (1) setting up a
system for decarbonization (tariffs, regulatory systems, etc.), (2)
providing incentives to companies making
decarbonization efforts, and (3) preparation of related infrastructure for
decarbonization. The recommendations are
based on the basic idea of “multi-path energy transition” utilizing all
fuels and all technologies
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