The Japan Bank for International Cooperation (JBIC) has signed a memorandum of understanding (MOU) for a strategic partnership on biomass with Indonesia’s ministry of energy and mineral resources (MEMR).


The MOU stipulates that JBIC and MEMR will set up a working team to explore potential biomass projects, including biofuel development projects, in Indonesia. JBIC will share information on financing facilities available for such projects.


Due to a tight energy supply, Indonesia has become a net importer of oil in recent years, in spite of its Opec membership. In response, the Indonesian government is currently promoting the use of alternative energy from renewable sources. The MOU is expected to mitigate the tight resource supply, not only in Indonesia, but across the Asian region, thereby securing a stable supply of energy resources for Japan.


The MOU is also expected to strengthen ties between Japan and Indonesia, contributing to more extensive trading and investment activities by Japanese firms, and enhancing bilateral economic ties between the two countries.