Indonesia explores Japanese financing for energy transition projects
A waste-to-energy facility in West Java was among the projects discussed with the Japan Bank for International Cooperation.
Indonesia’s Finance Minister Suahasil Nazara has discussed possible infrastructure and energy transition financing with the Japan Bank for International Cooperation (JBIC), including support for a waste-to-energy project in Legok Nangka, West Java.
According to a statement, Suahasil met JBIC’s governor during a multilateral summit in Bangkok. He urged the bank to broaden its work with state-owned infrastructure financier PT Sarana Multi Infrastruktur, covering projects already under way as well as new ones.
The talks also covered Indonesia’s energy security and its target of reaching net-zero emissions by 2060 or sooner. Suahasil discussed carbon markets and said carbon taxation was intended to encourage businesses to adopt lower-carbon practices, rather than simply raise revenue.
In separate World Bank discussions, Suahasil addressed how to support domestic growth while preserving fiscal credibility and spending prudently. The bank reiterated its willingness to back Indonesian priorities, including digital financing for micro, small and medium enterprises, agricultural initiatives such as Agricollect, and continuing public health programmes.
Talks with the International Finance Corporation examined ways to increase Indonesian exports and build small-business capacity. Suahasil also met Singapore’s Second Minister for Finance Indranee Rajah to discuss the regional economic outlook and closer ASEAN financial integration. Their agenda included carbon markets, blended finance for nature-based solutions, the ASEAN Power Grid, and exchanges of knowledge on artificial intelligence and digital transformation.
