Agency for Natural Resources and EnergyThe Fifth Japan-Indonesia Coal Policy Dialogue

As Indonesia is Japan's second largest supplier of coal (following Australia) and accounts for 20% of the coal imported to Japan, it is a very important country for Japan in ensuring a stable supply of coal.

In this context, a wide range of cooperation, including the exploration and development of coal mines and coal utilization, has continued for a long period between Japan and Indonesia. The Japan-Indonesia Coal Policy Dialogue aims to promote such cooperation, and this time marked the fifth session.

There were about 40 participants in total from both countries (as referred to below), including Mr. Akira Yasui, Director of the Coal Division, METI, from Japan and Ir. Edi Prasodjo, Director of Coal Enterprise Supervision, Ministry of Energy and Mineral Resources from Indonesia. The following results were achieved.

1. Both countries confirmed that they will continue cooperation in such areas as the maintenance of ongoing and stable coal trading, coal exploration and development, and the development of relevant human resources.
2. The Government of Japan requested the Government of Indonesia to continue the stable supply of high-rank coal to Japan and stated that Japan is willing to provide cooperation for coal exploration and development that contribute to such supply. It was affirmed that both countries will continue discussing such mutually beneficial cooperation.
3. In Indonesia, the effective utilization of low-rank coal, which accounts for about half of the coal reserves in the country, is an important policy issue. Both countries affirmed that cooperation between Indonesia and Japan on power generation using low-grade coal and on slurry formation, gasification, and upgrading of low-rank coal should be further promoted. In addition, aiming at the commercial utilization of low-rank coal, the Government of Japan requested the Government of Indonesia to consider the introduction of incentives, including tax exemption.
4. There are many plans for the introduction of high-efficiency coal-fired power generation in Indonesia, and both countries reaffirmed the importance of further cooperation in this area. At the same time, the Government of Japan requested the Government of Indonesia to properly evaluate the advanced facilities, and operation and maintenance technologies of Japanese companies in new coal-fired power generation projects as well as to provide cooperation to smoothly implement Japan's public financing support measures.

METI will make efforts to further enhance the cooperative relationships between Japan and Indonesia in the area of coal, and to ensure the stable supply of coal from Indonesia to Japan, as well as contributing to the realization of efficient and environmental power supply in Indonesia by introducing Japan's state of the art technology for coal-fired power generation to Indonesia.

Japanese participants

METI, Japan Oil, Gas and Metals National Corporation (JOGMEC), New Energy and Industrial Technology Development Organization (NEDO), Japan International Cooperation Agency (JICA), Japan Bank for International Cooperation (JBIC), and Japan Coal Energy Center (JCOAL)

Indonesian participants

Ministry of Energy and Mineral Resources (Directorate General of Mineral and Coal; Directorate General of Electricity, Geology Agency; Research and Development Agency, and Education and Training Agency), Ministry of Foreign Affairs, Coordinating Ministry of Economic Affairs, PT Tambang Batubara Bukit Asam (PTBA) and Indonesian Coal Mining Association (ICMA)

March 27, 2013

Coal Division, Natural Resources and Fuel Department, Agency for Natural Resources and Energy