Japan Seeks to Become Indonesia's Primary Strategic Partner

Japan is positioning itself to become Indonesia's primary strategic partner in the Indo-Pacific region, with a substantial deepening of bilateral cooperation in defense and energy over the past year. This development is driven by the converging interests of both nations, as Indonesia seeks to strengthen its security and economy while maintaining its non-aligned foreign policy, and Japan aims to expand its role as a regional security provider.

Background The strategic interests of Indonesia and Japan complement each other well, with Indonesia's large economy, control of key straits, and abundant natural resources synergizing with Japan's expertise in defense, manufacturing, and emerging technologies. However, the growing relationship faces challenges, including political uncertainty in both countries, economic uncertainty in Indonesia, and public opinion in Indonesia that views Japan as being too closely aligned with the United States.

Defense Cooperation Defense cooperation has become a key aspect of the expanding partnership, with authorities from both countries agreeing to discuss the export of Japan's older Asagiri-class destroyers to Indonesia. A defense cooperation agreement was also signed, including the possible acquisition of Japanese submarines and stealth frigates. A trilateral security cooperation agreement was signed with Australia, with Indonesia bolstering facilities on Morotai Island that Japan and other partners can access for training.

Energy Security Energy security has also become a key pillar of the growing relationship, with Indonesia seeking to diversify its energy mix and Japan needing reliable long-term energy partners. Both governments have recognized the importance of coordinating energy policies and cooperation agreements, enabling both nations to ensure continuous fuel supplies for long-term economic growth. A potential joint investment in Indonesia-based bioethanol production was announced, and a memorandum of cooperation was signed to develop nuclear energy technologies and ensure the critical minerals supply chain.

The cooperation between Indonesia and Japan is extending beyond conventional energy security into the long-term transition toward clean and resilient energy systems, with Indonesia aiming to create up to 500 MWe of nuclear capacity by 2034. Japan's desire to ensure its own security via nuclear energy, generating 20 percent of its energy from nuclear sources by 2040, coincides with Indonesia's goals. The two countries have launched cooperation efforts in various areas, including public health and economic cooperation, with initiatives such as tackling Indonesia's immunization gaps and facilitating knowledge exchange on forestry and conservation.

The success of Japan's efforts to become Indonesia's primary partner will depend on whether Tokyo's efforts help support Indonesia's goal of strategic autonomy. If a balance can be sustained, an Indonesian-Japan partnership could become one of the most important in the region in the coming years.