Major Indonesia - Japan Deal: Critical Minerals and Nuclear Energy Cooperation Announced

Bisnis | Ekonomi - Posted on 16 March 2026 Reading time 5 minutes

Indonesia and Japan signed a Memorandum of Cooperation (MoC) in two strategic sectors—critical minerals and nuclear energy—during a bilateral meeting held on the sidelines of the Indo-Pacific Energy Security Ministerial and Business Forum (IPEM) in Tokyo, Japan, on Sunday (March 16, 2026).

 

Indonesia’s Minister of Energy and Mineral Resources, Bahlil Lahadalia, emphasized that the cooperation would strengthen a more integrated and sustainable energy system. He stated that Indonesia is highly open to collaboration in managing critical minerals, as the country possesses the world’s largest nickel reserves along with resources such as bauxite, tin, copper, and rare earth elements.

 

“We are very open. We warmly invite the Japanese government and Japanese business partners to jointly manage our critical minerals in Indonesia,” Bahlil said.

 

During the same occasion, Japan’s Minister of Economy, Trade, and Industry (METI), Ryosei Akazawa, highlighted the importance of international collaboration to address global uncertainty in order to maintain energy security and supply sustainability.

 

“Amid the current global crisis, it is crucial for us to strengthen cooperation to safeguard energy security. Japan itself has prepared strategic energy reserves as a precautionary measure,” he said.

 

Akazawa also reaffirmed Japan’s commitment to continue supporting various energy cooperation projects with Indonesia, including the completion of the Legok Nangka Waste-to-Energy Power Plant (PLTSa) as part of the strategic partnership between the two countries.

 

Indonesia’s Ministry of Energy and Mineral Resources stated that cooperation in the critical minerals sector will focus on strengthening global supply chains to make them more secure and reliable. Meanwhile, nuclear energy cooperation will concentrate on developing low-carbon technologies with high safety standards.

 

Both countries will continue discussions on strengthening regional energy security, including cooperation in liquefied natural gas (LNG) and coal supply chains, as well as accelerating energy transition projects under the Asia Zero Emission Community (AZEC) framework, such as the operation of the Sarulla Geothermal Power Plant (PLTP) and the completion of the Legok Nangka waste-to-energy facility.

 

The cooperation between Indonesia and Japan is expected to enhance energy resilience while also supporting decarbonization efforts across the Indo-Pacific region.

 

Nuclear Reactor

Russia’s nuclear energy company Rosatom has offered two nuclear power plant (NPP) technology options, which it claims are safe and clean, for investment in West Kalimantan.

 

“We have nuclear power plant management technology that has proven to be safe. This technology is not only used in Russia but also in several countries such as Turkey, China, Egypt, and India,” said Rosatom representative Anna Belokoneva during a meeting with officials from the West Kalimantan Provincial Government in Pontianak, West Kalimantan, on Friday (February 27, 2026).

 

Belokoneva stated that Rosatom is ready to invest in West Kalimantan by bringing advanced technology that has been implemented in several countries. Rosatom offers two technology options: large modular reactors and Small Modular Reactors (SMR).

 

She explained that large-capacity reactors are capable of generating up to 1,200 megawatts of electricity, while small modular reactors can produce around 100 megawatts.

 

“We propose building nuclear power plants using either small or large modular reactors, depending on the needs and decisions of the Indonesian government,” she said.

 

Specifically for SMR technology, Rosatom also offers floating nuclear power plants, which it claims to be the only ones currently operating in the world and which have been running in Russia for seven years.

 

According to her, floating nuclear power plant technology is highly relevant for regions located far from major power generation centers, including coastal and remote areas.

 

“This technology is very useful for meeting electricity needs in hard-to-reach regions. Its safety system is both passive and robust, in accordance with international standards,” she said.

 

Belokoneva emphasized that Rosatom has studied various global nuclear incidents, including the reactor leak in Fukushima, Japan, and ensured that the offered technology has anticipated similar risks.

 

“We understand public concerns regarding nuclear power plant safety. However, our safety standards are very high. In Russia alone there are 11 nuclear power plants, and people continue to live and carry out activities around them,” she said.

 

In addition to safety factors, Rosatom also claims that electricity costs from nuclear power plants are relatively cheaper in the long term due to production efficiency and transparency in management.

 

Nevertheless, she emphasized that the decision to build nuclear power plants fully rests with the Indonesian government.

 

“We are only offering. If the Indonesian government welcomes the proposal, we are ready to carry out construction in accordance with applicable procedures and regulations,” she said.

 

Belokoneva added that the company is aware of plans to develop several nuclear power plant sites in Indonesia, including in West Kalimantan, which is why Rosatom offered the cooperation as support for the country’s national energy strategy.

 

At the same event, the Russian Ambassador to Indonesia, Sergei Tolchenov, said that the visit to West Kalimantan was part of efforts to introduce Russian technology while also exploring concrete cooperation opportunities with the regional government.

 

“We want to offer the implementation of reliable nuclear power plant management technology while also opening opportunities for cooperation in other sectors such as aluminum processing plants and education,” Tolchenov said.

 

He noted that based on the meeting with the Governor of West Kalimantan, the Russian side observed a positive response as an initial step in exploring cooperation.

 

However, the realization of the nuclear power plant project will still depend on the readiness and official decisions of both the Indonesian government and the West Kalimantan Provincial Government.

 

“We are waiting for an official response from the Indonesian government and West Kalimantan. If there is room for cooperation, we are ready to follow it up,” he said.

 

This offer adds to the list of energy development options in West Kalimantan, which has long been encouraged to strengthen energy security while also supporting downstream industrialization based on the region’s natural resources.

Source: republika.co.id

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