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 Indonesia-Japan Talks Boost Investment, Industry, and Energy

Indonesia-Japan Talks Boost Investment, Industry, and Energy

Asia Manufacturing Review Team | Sunday, 10 August 2025

  Indonesia-Japan Talks Boost Investment, Industry, and Energy

The Indonesia-Japan Executive Dialogue 2025 has reinforced investor trust and created new opportunities for strategic partnerships between the two countries, highlighting mutual pledges to industrial change, sustainable energy, and digital advancement. Rachmat Gobel, the head of the Indonesia-Japan Friendship Association (PPIJ), emphasized that the bond between Indonesia and Japan extends beyond history and serves as a foundation for shaping a shared future.

“This forum is a vital moment to identify new opportunities, strengthen long-term commitments, and ensure our partnership remains relevant in this era of industrial transformation, sustainable energy, and digitalization,” Gobel said.

“Initiatives like the Indonesia-Japan Executive Dialogue 2025 align with our national strategy to accelerate industrial downstreaming, strengthen supply chains, and attract high-quality investments. Such collaboration will be instrumental in realizing Indonesia’s Golden Vision 2045,” said Minister Rosan.

In addition to investment, the forum also examined cross-sector collaboration via public-private partnership (PPP) models, especially in infrastructure development, industrial downstreaming, and food security. These models are anticipated to stimulate national strategic initiatives while maintaining fiscal efficiency.

An outstanding instance is the Indonesia International Automotive Proving Ground (IIAPG) located in Bekasi, West Java, marking the nation’s first automotive testing facility that meets international standards. Created through a PPP initiative by the Ministry of Transportation and a group of local firms, including Gobel Group, the project sees significant involvement from Japanese collaborators.

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The IIAPG initiative has obtained funding from the Japan Bank for International Cooperation (JBIC) and Mitsubishi UFJ Financial Group (MUFG) via an investment loan program. Financial pledges from these two prominent Japanese banks indicate robust trust in Indonesia's automotive industry and the clarity and viability of its PPP framework.

The initiative further emphasizes the overall robustness of bilateral collaboration in industrial infrastructure and the transformation of automotive technology. The IIAPG project is regarded as a crucial step in advancing the transformation of Indonesia's automotive industry by promoting the establishment of internationally recognized safety and sustainability standards.


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