Indonesia, Japan Advance Sustainable Investment Partnership Through IJIF 2026

  • 30 Mei 2026 18:41 WIB
  •  Voice of Indonesia

RRI.CO.ID, Jakarta - Indonesia and Japan continuously boosts their strategic economic partnership through increased sustainable investment in priority sectors. It includes green energy, agro-industry, food downstreaming, and other areas aligned with the government's sustainable development agenda.

According to a press release from the Embassy of the Republic of Indonesia in Tokyo received on Friday, May 29, 2026, the issue was highlighted during the Indonesia–Japan Investment Forum (IJIF) 2026, organized by the Indonesian Embassy in Tokyo in collaboration with Bank Indonesia and the Indonesia Investment Promotion Center (IIPC) Tokyo on May 22, 2026, in Tokyo.

Indonesian Deputy Ambassador to Japan, Maria Renata Hutagalung, underscored that Japan is not only one of Indonesia’s major investors but also a strategic partner in supporting the country’s industrial transformation. She noted that Indonesia continues to enhance its competitiveness through industrial downstreaming, energy transition, sustainable infrastructure development, and the advancement of technology-based, value-added industries.

“In this context, the Indonesia–Japan strategic partnership is becoming increasingly important. Japan’s strengths in technology, quality investment, innovation, and long-term commitment complement Indonesia’s vast potential to promote sustainable economic growth and regional stability. Amid ongoing global uncertainty, Indonesia’s economy continues to demonstrate strong resilience, supported by stable economic growth, sound macroeconomic conditions, and ongoing structural reforms,” Maria said.

She also invited Japanese investors to participate in Indonesia’s sustainable development agenda through a wide range of investment opportunities in priority sectors.

Meanwhile, Director for East Asia, South Asia, the Middle East, and Africa Promotion at Indonesia’s Ministry of Investment and Downstreaming/BKPM, Cahyo Purnomo, revealed that Japan’s realized foreign direct investment in Indonesia reached USD18.1 billion between 2021 and the first quarter of 2026, with an average annual growth rate of 13.2 percent.

Indonesia–Japan economic ties are reflected in Japan’s investment realization of USD17.1 billion during the 2021–2025 period, generating more than 278,000 jobs and recording an average annual growth rate of 13.2 percent. Japan currently ranks as Indonesia’s fifth-largest foreign investor, demonstrating continued confidence in the country’s economic potential.

Vice President of the Japan External Trade Organization (JETRO), Kenichi Hirano, also expressed support for expanding Japanese investment cooperation in Indonesia, particularly in green industries, digital transformation, supply chain resilience, and high-tech manufacturing.

The IJIF 2026 forum, which featured two panel discussion sessions, addressed Indonesia’s investment policies and introduced six national priority projects to Japanese investors, including a biomass energy project in Grobogan, the Industropolis Batang Special Economic Zone in Central Java, a Tin Downstream Industry project in East Java, Food-Based Palm Oil Derivative Commodities (Oleofood) on Maloy Batuta Trans Kalimantan (MBTK) Special Economic Zone (SEZ), D-HUB Special Economic Zone BSD City, and the Giant Sea Wall project in Jakarta Bay.

During the forum, attended by around 130 Japanese business leaders and strategic partners, two Japanese companies submitted Letters of Intent (LoI) for investment projects in Indonesia. Four Pride Japan Co., Ltd. expressed interest in a renewable energy project based on Pongamia cultivation and processing, while ONODA Inc. proposed investment in a smart gas meter assembly industry.

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