Asia Powers Deepen Economic Ties Amid Energy Uncertainty

Japan and Indonesia have committed to strengthening their economic relationship and collaborating on energy security measures. This joint effort comes as both Asian nations grapple with increasing instability concerning global oil and gas supplies.

The leaders met in Tokyo on Tuesday, March 31, 2026. Indonesian President Prabowo Subianto met with Japanese Prime Minister Sanae Takaichi at the Akasaka guesthouse to announce their joint statements following bilateral talks.

Addressing Global Resource Volatility

Prime Minister Takaichi noted the global recognition of energy security's importance following recent geopolitical events. She stated, "In the wake of the Iran situation, the importance of resources and energy security is being recognized globally."

This shared concern is driving both nations to secure vital resources and stabilize supply chains, particularly for liquefied natural gas (LNG).

Focus on Nuclear Energy and Critical Minerals

The two countries formalized new avenues for collaboration by signing a deal earlier this month focused on critical minerals and nuclear energy. This agreement was signed on March 15.

Under this memorandum, Japan and Indonesia will cooperate on constructing a new nuclear power plant. Potential sites include West Kalimantan in Indonesia, utilizing Japanese technological expertise and possible funding from development banks, according to documents released by Japan’s Ministry of Economy, Trade and Industry.

Japan's Zero-Carbon Goals and Indonesian Nuclear Plans

Japan is actively promoting nuclear energy as part of its broader initiative to achieve zero-carbon emissions. Consequently, Japan is seeking to expand its nuclear cooperation with Southeast Asian partners like Indonesia.

Indonesia itself has ambitious nuclear plans, having announced intentions last year to construct two small modular reactors (SMRs) on a southern island by 2034. Canada and Russia have reportedly submitted formal cooperation proposals for these SMR projects.

Stabilizing LNG and Oil Imports

Beyond nuclear power, Takaichi and President Subianto agreed to deepen cooperation aimed at stabilizing supply chains, specifically mentioning LNG. Japan, which is highly dependent on imports, sources approximately 5% of its LNG supply from Indonesia.

Resource-scarce Japan imports over 90% of its oil from the Middle East. In response to current market instability, the nation began releasing state and commercial oil reserves earlier this month in an effort to stabilize its domestic market and diversify suppliers.