Indonesia Advances Energy Transition Through AZEC Collaboration
Jakarta, The Gulf Observer: Indonesia is strengthening its commitment to energy transition and a green economy through collaboration with the Asia Zero Emission Community (AZEC), with a focus on flagship projects and strategic cooperation with Japan.
Coordinating Minister for Economic Affairs Airlangga Hartarto highlighted the AZEC initiative as a key outcome of the January meeting between President Prabowo Subianto and Japanese Prime Minister Shigeru Ishiba. He reiterated Indonesia’s commitment to accelerating the implementation of priority projects under the AZEC framework.
“We must swiftly realize the commitment of both heads of state regarding the development and implementation of flagship projects within AZEC, particularly the Muara Laboh Geothermal Power Plant (PLTP),” Hartarto stated on Sunday.
His remarks came during a meeting with Japan Bank for International Cooperation (JBIC) Chairman Tadashi Maeda and AZEC Ambassador for Promotion Takio Yamada, where discussions centered on energy transition initiatives.
Japan-Indonesia Energy Cooperation
JBIC Chairman Tadashi Maeda provided updates on JBIC’s ongoing cooperation with Indonesia, particularly in supporting state-run electricity company PLN to develop the Java-Sumatra transmission network. He also outlined Japan’s new renewable energy strategic plan, which aims to ensure sustainable energy supply through 2040.
“Japan seeks Indonesia’s support in implementing this strategic plan and in fulfilling the renewable energy needs of both countries,” Maeda remarked.
Meanwhile, Ambassador Takio Yamada praised Indonesia’s strong support for AZEC’s goal of achieving net-zero emissions and enhancing regional energy cooperation.
Key AZEC Projects in Indonesia
Hartarto also proposed additional areas of collaboration, including the Riau solar power plant, the ASEAN Power Grid transmission project, and the use of palm oil for sustainable aviation fuel (SAF).
According to the Expert Group Meeting report, AZEC projects in Indonesia are categorized into three development tiers:
- Category I (Commercial-Ready Projects):
- Muara Laboh Geothermal Power Plant (West Sumatra)
- Legok Nangka Waste-to-Energy (PLTSa) Project
- Sustainable Aviation Fuel (SAF) Initiative
- Category II (Potential Commercial Projects Under Feasibility Study):
- Kayan Hydroelectric Power Plant
- Peatland Management Initiatives
- Java-Sumatra Transmission Network
- Category III (Pilot Projects and Emerging Technologies):
- New geothermal power technologies
- Green ammonia production
- Hydrogen development for transportation
- Biofuel and Bioavtur production
“We will strive to upgrade projects in Categories III and II to Category I to ensure immediate economic benefits,” Hartarto affirmed.
The partnership with AZEC reflects Indonesia’s commitment to achieving a sustainable energy future, fostering regional cooperation, and advancing its role as a leader in the global energy transition.
