Indonesia and Japan are expanding their partnership to mitigate effects of global energy shortages and enhance bilateral security measures, especially at sea.
Indonesia has liquefied natural gas (LNG) and coal needed by Japan, which in turn has technical expertise and financial connections to advance Indonesia’s nuclear energy program. Both nations are seeking alternatives to Middle East oil and gas supplies sharply curtailed by Iran.
Indonesian President Prabowo Subianto and Japanese Prime Minister Sanae Takaichi discussed energy and regional security in Tokyo in late March 2026. “In the wake of the Iran situation, the importance of resources and energy security is being recognized globally,” Takaichi said at a joint news conference.
As energy supply deliveries dwindle and prices spike due to the conflict in Iran, nations such as Japan that depend on Middle East fuel are seeking other sources, conserving supplies, tapping reserves and offering subsidies.
Indonesia is the world’s biggest exporter of thermal coal for power generation and a major exporter of LNG, the Reuters news agency reported. Japan, which relies almost exclusively on imports of LNG and oil, has said it will allow utilities to increase use of coal-fired power plants. Tokyo has turned to thermal coal suppliers such as Indonesia to reduce reliance on Russia after the start of the Russia-Ukraine war in 2022 spurred international sanctions against Moscow.
Jakarta and Tokyo earlier in March agreed to collaborate on critical minerals and nuclear energy. They will build a nuclear power plant, possibly in Indonesia’s West Kalimantan province on the island of Borneo, using Japanese expertise and potential funding by development banks, according to Japan’s Ministry of Economy, Trade and Industry, The Associated Press reported. Indonesia in 2025 announced that it will build two small modular nuclear reactors by 2034 to help meet surging energy demands.
Prabowo and Takaichi also agreed to enhance maritime security through Japan’s defense asset and capacity-building initiatives, The Japan Times newspaper reported. Tokyo is seeking enhanced collaboration with Southeast Asian countries to counter China’s increasing assertiveness, and Takaichi called cooperation with Indonesia “extremely important to realize a Free and Open Indo-Pacific.”
Indonesia and Japan established diplomatic relations in 1958 and elevated relations to a Comprehensive Strategic Partnership in 2023. The countries share fundamental values such as democracy, human rights and the rule of law. Prabowo called the bilateral ties an “exemplary” model for other countries.
After his talks in Tokyo, Prabowo met with South Korean President Lee Jae-myung in Seoul. “We have many similarities in our history and we have common interests,” Prabowo said. “Both our countries had to fight very hard for our independence.”