Press Conference by Minister Akazawa (Excerpt)

*Note: This is a provisional translation for reference purposes only.

12:12‒12:36 p.m.
Friday, March 27, 2026
Press Conference Room, METI Main Building

Opening Remarks

Supporting small and medium-sized enterprises in light of the situation in the Middle East

On Monday, March 23, we started to offer a range of consulting services to small and medium-sized enterprises (SMEs) and micro/small businesses that are affected by the situation in the Middle East and the resulting crude oil price hikes. We are providing the services through a total of about 1,000 special contact points established nationwide on the premises of relevant government financial institutions and commerce and industry associations. Moreover, as a means to give funding support to SMEs affected by rising materials and energy prices as well as by surging crude oil prices, Japan Finance Corporation (JFC) has lowered its safety net loan interest rates. Also, from Wednesday, April 1, JFC will lower its loan interest rates for companies that are facing a decrease or suspension of transactions or production due to the situation in the Middle East. In addition, we will hold a meeting to exchange opinions to offer more support to companies and facilitate financing. Then we will issue a written request under the names of the related ministers to ask both public and private financial institutions to offer financial support to companies in a more responsive manner. Concurrently, we will issue a written request dated today to related trade organizations, national government agencies and local governments to ask them to decide on their transaction prices in consideration of the rising materials and energy costs to ensure appropriate price pass-through. Going forward, we will continue to monitor the impact of the situation in the Middle East on SMEs and implement all necessary measures. Please ask the administrative staff for further details. 

Acceptance begins of applications for the digitalization and AI introduction subsidy

Next week, on Monday, March 30, we will start accepting the first round of applications for the digitalization and AI introduction subsidy, for which funds are allocated in the supplementary budget for fiscal 2025. This subsidy is intended to help SMEs introduce tools for AI transformation (AX) as well as smart cash registers to flexibly respond to changes in the consumption tax rate. We hope that the subsidy will be utilized proactively by SMEs that are making investments to gain more earning power. Please ask the administrative staff for further details. 

Roundtable meeting to make effective use of the Strategic Investment Initiative as a means to help SMEs achieve further growth

On Tuesday, March 31, we will hold a roundtable meeting to make effective use of the Strategic Investment Initiative as a means to help SMEs achieve further growth. The organization of this meeting was proposed by Mr. Ochi Toshiyuki, Parliamentary Vice-Minister of Economy, Trade and Industry, for us to exchange opinions with SMEs and their support organizations, such as commerce and industry associations. Regarding the Japan-U.S. Strategic Investment Initiative, we unveiled the first set of three projects in February and another three as the second set in March, when I accompanied Prime Minister Takaichi to the United States for the summit meeting, as you already know. Japanese companies will be able to increase sales and expand their business by supplying equipment and other products to companies engaging in these projects. We think it is important to give benefits not only to large companies but also to SMEs through the Initiative, for example to those that offer components in the supply chain. Accordingly, under the initiative of Parliamentary Vice-Minister Ochi, we will work to encourage more SMEs to be involved in the Strategic Investment Initiative. This is something we truly attribute importance to, and as economic security has become even more important with the times, we hope that SMEs will supply their components or products for use in the United States, thereby honing their technologies and finding a new market. We are strongly committed to moving in this direction. 

Question-and-Answer Session

Release of oil reserves and securing of alternative supply sources

Q: Let me ask you about your responses to the situation in the Middle East. On the 25th, both Prime Minister Takaichi and you had meetings with Dr. Fatih Birol, Executive Director of the International Energy Agency (IEA). The Executive Director stated that the IEA could consider proceeding with an additional coordinated release of oil reserves by member countries. I know that yesterday, you also talked with President Kito of the Petroleum Association of Japan, who has been requesting an additional release. The release of Japan’s national oil reserves just started yesterday. Please share with us your view on whether an additional release is necessary and the size and timing of such a release. Also, could you talk about the present situation and future outlook on the securing of alternative oil supply sources?

A: The day before yesterday, on Wednesday, March 25, I had a meeting with IEA Executive Director Birol, following the meeting between him and Prime Minister Takaichi. At the meeting, I requested him to prepare for an additional release of reserves as a means to deal with the possible prolongation of the situation in the Middle East. Executive Director Birol expressed his appreciation for Japan's taking the lead among IEA members in the decision to release its reserves. Also, he made a powerful statement that the IEA will go for an additional coordinated release if it is necessary and that the Agency will continue to cooperate closely with Japan to ensure the stability of the Asian and global energy markets. In Japan, the private-sector oil reserve requirement was lowered last week, on Monday, March 16. And yesterday, on Thursday, March 26, we started to release oil from the national reserves and also from the oil reserved under the joint crude oil stockpiling project with oil-producing countries. For the time being, we will work on the smooth release of oil reserves. Going forward, while carefully monitoring the market trends and the availability of alternative supply sources, we will make appropriate responses in collaboration with the IEA. In the process, we will attribute special importance to securing alternative supply sources. I acknowledge that companies in the private sector are examining the securing of alternatives, not ruling out any options and including supply from the United States, from the Middle East bypassing the Strait of Hormuz, from Central Asia, South America and all other countries from which Japan has imported oil before. We will continue to cooperate with the private sector and the international community to ensure the stable supply of oil in Japan, considering all possible options.

Possibility of increasing oil production in Japan, and measures other than the release of oil reserves and the granting of fuel oil subsidies

Q: I would like to ask you two questions. First, according to what we have heard from an energy developer in the private sector, it seems difficult to increase oil production in Japan due to limitations on oil exploitation in Japan. However, it is now difficult for Japan to import oil from the Middle East. Under these circumstances, will the government consider increasing domestic oil production? Second, in the Philippines, the government declared a state of national energy emergency for the purpose of stabilizing energy. Does the Japanese government plan to implement measures other than the release of oil reserves and the granting of fuel oil subsidies? If so, please let us know what you are specifically planning to do.

A: Regarding the first question, oil produced in Japan accounts for about 1% of the oil supplied to meet domestic demand and is indeed a precious oil supply source. We have already been making maximum use of the domestic production capacity for domestic supply, and from a technological perspective, we have confirmed that the production capacity cannot be expanded further, although we are committed to ensuring the stable supply of energy without ruling out any options and explored the possibility of increasing the domestic production of oil. So far, for the supply and demand of oil in Japan, we have observed no material impact of the situation in the Middle East, as we are making all possible efforts to ensure the stable supply of oil, including releasing oil reserves and securing alternative supply sources. While making these efforts, we will continue to give support for the exploration and development of fuel resources in Japan, in light of the need to secure supply sources on a medium- to long-term basis and also implement short-term measures to ensure the stable supply of energy in Japan, without ruling out any options.

As for the declaration of a state of national energy emergency made by the Philippines, I think that country is placed in a very difficult situation as it also depends on oil supplied via the Strait of Hormuz as Japan does, although I don’t exactly remember the Philippines’ rate of dependency on the oil supplied via the Strait. At any rate, Japan and the Philippines are among the few countries that rely on the Middle East for 90% or more of their crude oil imports, and the amount of oil reserves maintained in the Philippines is, as far as I remember, equivalent to about one month of domestic consumption. In contrast, Japan has eight months’ worth of reserves in preparation against emergency, so I can understand that the Philippines is placed in a situation that is quite different from the one in Japan. I know that the Philippines has declared a state of national energy emergency and is setting forth measures including monitoring the supply of fuels and extending support to consumers. The environment surrounding the supply and demand of oil differs from country to country, and we have not received any reports that the situation in the Middle East will have an immediate impact on Japan, and this is thanks to the reasons that I have already mentioned. The amount of oil reserves differs greatly between the two countries. However, we will steadily implement necessary measures, including releasing oil reserves and securing alternative oil supply sources for the time being, thereby preventing the shortage of supply of oil products, such as gasoline. We will continue to monitor the situation and implement all necessary measures to ensure the stable supply of energy in Japan, without ruling out any options.

Request for cooperation from other countries and securing of alternative supply sources

Q: Let me ask a question in relation to the issues faced by the Philippines. Countries in Southeast Asia, including Vietnam, have been asking Japan to support them in securing oil supplies. However, Japan is releasing oil from its own reserves, and the future situation is unpredictable. How should Japan respond to such requests from other countries? Regarding this, please share your views with us. Also, you have said that you will not rule out any options for the securing of alternative supply sources. According to some news reports, INPEX is considering the preferential supply of oil from Central Asia to Japan. Please tell us whether this is true or not.

A: For the Philippines, I have already made comments about the situation faced by that country, and in fact, Asia is placed in a quite serious situation. Compared with Europe, Asia is facing more difficulties, which I mentioned also at the meeting with IEA Executive Director Birol. Many cars are lining up to refuel in front of gasoline stations, and some countries have stopped exporting oil products. Europe and Asia indeed face quite different situations. Under such circumstances, Japan should act as a leading Asian country. Accordingly, we have been communicating the fact that Asia, including Japan, is suffering to G7 countries and IEA members. We are strongly aware of the fact that so many Asian countries are placed in a very difficult situation. On the other hand, oil is traded globally, and striking a supply-demand balance in the Asian market is quite important for Japan to secure a stable supply of energy and maintain and enhance its industrial supply chain. The released oil reserves will surely be sold to domestic oil refining companies in principle, in pursuant to the laws and regulations that provide for the stable supply of oil in Japan. However, for the release of oil reserved under the joint crude oil stockpiling project with oil-producing countries, the case may be different. Based on the recognition of these facts, we will make decisions case by case in an appropriate manner, while carefully monitoring what is going on. We have, however, no specific plans at present.

Concerning INPEX, I know that some news reports were made this morning, but I have no comments about the news. For Central Asia, which you have mentioned, Kazakhstan and Azerbaijan are attracting much attention, and indeed Japan has imported oil from these countries before. We are intensively examining the possibility of importing oil from these countries, and under these circumstances, I acknowledge that companies including INPEX are making all-out efforts to secure oil supply sources through various means.

G7 meeting of finance and energy ministers and central bank governors

Q: I would like to ask you a question about the online meeting of G7 finance and energy ministers as well as central bank governors, which Mr. Roland Lescure, the French Minister for Economy and Finance, said would be held on March 30. Will it be truly held? If it is, what do you expect from it, given that in the previous G7 finance ministers’ meeting, participants talked about a coordinated release of oil reserves?

A: On Monday, March 30, a joint meeting of G7 finance and energy ministers and central bank governors will be held. I will represent METI at the meeting. I acknowledge that it will provide participants with an opportunity to share the latest information and discuss how to collaborate together in view of the fact that countries across the world, particularly those in Asia, are affected by the ongoing tensions in the Middle East with regard to the supply and demand of oil and other energy sources as well as economic activities in their respective countries. Japan is, as I have already mentioned, the sole Asian G7 member country, and I have been communicating the situations faced by Asian countries on behalf of the region and striving for a coordinated release of oil reserves under the leadership of the IEA. Also, at the coming meeting, I will share the latest information about the current circumstances in Asia, which is the region most heavily affected by the crisis caused by the situation in the Middle East, and will emphasize the need to prepare for the prolongation of the crisis. I would also like to demonstrate leadership in the examination of appropriate measures to be taken by the G7 as a whole.