The Japan Bank for International Cooperation (JBIC) has signed a memorandum of understanding (MOU) on financial cooperation with PT Pertamina (Persero), which runs oil and gas reserves in Indonesia.

Under the terms of this MOU, JBIC will use various financial instruments to support projects that Japanese firms undertake jointly with Pertamina. Regular consultation meetings will be held between JBIC and Pertamina to exchange information and views on candidate projects to be implemented by Pertamina, on business strategies for Pertamina’s projects and on the implementation status of projects supported by JBIC.

The Indonesian government has been encouraging the mobilisation of private sector funds for energy infrastructure development. Pertamina, reflecting its transformation from a government agency to a private corporation, has been playing a key role in energy-related projects in Indonesia and has made fundraising a key element of its agenda.

JBIC is committed to securing a stable supply of energy resources for Japan by strengthening its ties with oil and gas producing countries. JBIC has already supported gas and LNG development projects undertaken by Pertamina in which Japanese companies have stakes.

Last month, JBIC signed a MOU on comprehensive strategic partnership with Qatar Petroleum in Qatar.