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August FY2024
Minister Saito Visits Jakarta, the Republic of Indonesia

Minister Saito Visits Jakarta, the Republic of Indonesia

August 21, 2024

From Tuesday, August 20, to Wednesday, August 21, 2024, Mr. Saito Ken, Minister of Economy, Trade and Industry, visited Jakarta, the Republic of Indonesia, and attended the Second Asia Zero Emission Community (AZEC) Ministerial Meeting. In addition, he exchanged views with participating ministers and stakeholders from partner countries on cooperation for decarbonization and participated in the launch ceremony for the Asia Zero Emission Center and an MOU ceremony.

1. Second AZEC Ministerial Meeting

The Second AZEC Ministerial Meeting was held, bringing together representatives of all 11 AZEC partner countries and international organizations. As representatives of Japan, Minister Saito, Mr. Yagi Tetsuya, State Minister of the Environment, and Mr. Yamada Takio, Ambassador in charge of the AZEC, attended the meeting.

Minister Saito provided a briefing on the AZEC policies related to specific activities, while State Minister Yagi provide a briefing on the efforts by the Ministry of the Environment.

Participants from the governments of partner countries and international organizations explained their efforts for realizing net-zero emissions, including the importance of various pathways tailored to the situations of the respective countries, energy transition policies, and decarbonization in the power, transport, and industry sectors.

Representatives of the Economic Research Institute for ASEAN and East Asia (ERIA) also introduced the future efforts to be taken by the Asia Zero Emission Center. Following this, representatives of the AZEC Advocacy Group provided the chairpersons with a policy recommendation and a briefing on the recommendation.

As an outcome of the meeting, participating ministers adopted a joint statement. They reaffirmed AZEC Principles, including the utilization of “various pathways towards net-zero emissions” and the need for “addressing climate change, promoting economic growth and achieving energy security simultaneously,” and also agreed on AZEC Sectoral Initiatives, which aim to promote decarbonization in the power, transport, and industry sectors, with a view to the coming decade.

2. Launch ceremony for the Asia Zero Emission Center

On August 21, the launch ceremony was held for the Asia Zero Emission Center, a body established under ERIA. Minister Saito provided a briefing on the activities of the center under the frameworks of ERIA and AZEC, confirmed by participating ministers.

3. MOU ceremony

Participants confirmed and released about 70 Memorandum of Understanding (MOUs) among companies and relevant organizations of AZEC partner countries, which were newly concluded after the AZEC Leaders Meeting held in December 2023 and in preparation for this ministerial meeting. In addition, METI concluded a Memorandum of Cooperation (MOC) on CCS with the Ministry of Trade and Industry of Singapore, as well as an MOC on transition finance with the Asian Development Bank and ERIA.

4. Bilateral meetings

(1) Meeting with H.E. Mr. Rafizi Ramli, Minister of Economy, Malaysia

Malaysia showed strong support for AZEC, which became a trigger for the country to formulate its National Energy Transition Roadmap, and the two sides confirmed that Japan and Malaysia will work together to hold the Third AZEC Ministerial Meeting in Malaysia in 2025. In addition, they agreed to advance bilateral cooperation in the fields of ammonia, CCUS, and SAF.

(2) Holding the Second AZEC Japan-Indonesia Joint Task Force with H.E. Dr. Airlangga Hartarto, Coordinating Minister for Economic Affairs, and H.E. Mr. Rosan Roeslani, Minister of Investment, Indonesia, as well as with Mr. Maeda Tadashi, Special Advisor to the Cabinet

Participants confirmed the progress made in many projects, inducing those for renewable energy, waste to energy plants, and electricity transmission and distribution, and welcomed their advancement. In addition, METI and the Ministry of Energy and Mineral Resources (MEMR), Indonesia, signed a memorandum on comprehensive cooperation in energy. Moreover, Minister Rosan expressed his high expectations for AZEC, and the two sides confirmed that Japan and Indonesia will work together to promote AZEC.

MEMORANDUM OF COOPERATION BETWEEN THE MINISTRY OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA AND THE MINISTRY OF ECONOMY, TRADE, AND INDUSTRY OF JAPAN ON THE ENERGY SECTOR(PDF:236KB)

(3) Meeting with H.E. Dr. Tan See Leng, Second Minister for Trade and Industry, Singapore

The two sides agreed on the importance of promoting open innovation by the public and private sectors and confirmed that Japan and Singapore will continue to work together to promote AZEC. They also welcomed the conclusion of the MOC on CCS.

(4) Meeting with H.E. Mr. Keo Rottanak, Minister of Mines and Energy, Cambodia

The two sides confirmed the efforts by Japanese companies related to renewable energy and agreed that Japan and Cambodia will continue to collaborate. They also confirmed that the two countries will work together to promote AZEC.

(5) Meeting with H.E. Mr. Raphael Perpetuo Mercado Lotilla, Secretary of the Department of Energy, the Philippines

Concerning the efforts by Japanese companies related to ammonia and nuclear power, the two sides agreed that Japan and the Philippines will continue to collaborate in advancing these efforts. They also confirmed that the two countries will work together to promote AZEC.

(6) Meeting with Mr. Franky Oesman Widjaja, Executive Vice Chairman, Sinar Mas Group, and Mr. Michael Widjaja, CEO, Sinar Mas Land

The two sides exchanged views on the expectations for collaboration with Japanese startups and the expectations for Sinar Mas Group to tackle efforts for decarbonization as well as for AZEC.

Reference

1. Gala dinner

A gala dinner was held bringing together the ministers and stakeholders of partner countries, and Minister Saito delivered an address at the beginning of the event.

2. Roundtable of the AZEC Advocacy Group

The AZEC Advocacy Group, a body consisting of business leaders of Keidanren and the ASEAN Business Advisory Council as well as representatives of ERIA, held their first roundtable. Participants compiled a policy recommendation for decarbonization under the AZEC framework and provided a briefing on it at the AZEC Ministerial Meeting.

3. AZEC Business forum

An AZEC Business Forum was held, bringing together over 200 business leaders. Representatives of participating companies, including the ASEAN Business Advisory Council, Keidanren, ERIA, the Japan Bank for International Cooperation, and PT PLN (Persero), engaged in proactive discussions on the introduction of renewable energy, the decarbonization of coal-fired power plants, and financing.