Danantara-Japan Collaboration: Strategic Steps to Establish Renewable Energy Cooperation
By: Irfan Aditya
The Investment Management Agency (Danantara) signed a memorandum of understanding with the Japanese financial institution, the Japan Bank for International Cooperation (JBIC), to open financing opportunities to accelerate Indonesia’s transition to a digitally connected green economy. This collaboration not only strengthens bilateral relations between the two countries but also marks an important milestone in accelerating the national energy transition to cleaner, more sustainable, and globally competitive resources.
This collaboration also reflects international confidence in the stability of Indonesia’s policies and the future prospects of a green economy. In a global context that continues to push for decarbonization and carbon emission reduction, this partnership opens up significant opportunities for Indonesia to expand renewable energy technologies and build an inclusive and future-oriented investment ecosystem.
Danantara has a significant mandate to encourage strategic investments that have a systemic impact on national development, particularly in the clean energy, green infrastructure, and industrial transformation sectors. On the other hand, JBIC is widely known as a Japanese financial institution that actively supports sustainable energy projects around the world. Therefore, the synergy between Danantara and JBIC is an ideal collaboration, combining the strength of Indonesia’s long-term development vision with the support of Japanese technology, financing, and experience in the renewable energy sector.
Danantara Indonesia CEO Rosan Roeslani stated that the partnership with JBIC is a strong signal of international confidence in Indonesia’s green transition agenda. He also stated his commitment to mobilizing strategic investment that supports national priorities while meeting global standards for sustainability, impact, and governance.
Under the memorandum of understanding, both parties will identify and jointly develop various priority projects, focusing on decarbonization and the circular economy, including renewable energy, electricity transmission, and water and wastewater management. Furthermore, they will focus on sustainable digital infrastructure such as green data centers and healthcare services.
This step aligns with the government’s target of achieving a 23 percent renewable energy mix by 2025 and carbon neutrality by 2060. The Danantara-JBIC collaboration has the potential to be a significant catalyst in accelerating the achievement of these targets. Beyond energy projects, this collaboration will also encompass other supporting sectors such as the development of an electric vehicle ecosystem, national battery production, digitalization of the energy sector, and the establishment of a clean energy research and innovation center. This collaboration will create a broad multiplier effect for the national economy and strengthen Indonesia’s position in the global green energy value chain.
Going forward, this collaboration is projected to extend beyond the energy sector to include the development of electric vehicle technology, battery manufacturing, and other green energy ecosystems. This potential strengthens Indonesia’s position as a hub for sustainability-based energy and industrial transformation in Southeast Asia. In addition to opening access to advanced technology, collaborative projects also encourage the strengthening of local research and innovation capacity, including collaboration with domestic universities and research institutions.
With various flagship projects facilitated in the first half of 2025, Danantara continues to advance Indonesia’s long-term development agenda through innovative and sustainable investments. Furthermore, Danantara is also intensifying collaboration with various parties to increase investment in Indonesia. One example is the signing of a memorandum of understanding (MoU) with the Saudi Arabian company ACWA Power. This collaboration brings total project funding to US$10 billion, equivalent to Rp 162.36 trillion. Furthermore, Danantara and the Qatar Investment Authority (QIA) have also established a strategic partnership to manage a US$4 billion investment fund dedicated to development in Indonesia.
Danantara’s Managing Director of Global Relations and Governance, Mohamad Al-Arief, stated that each partnership is not simply a financial transaction, but rather a strategic step towards building governance that meets global standards. This strategic collaboration demonstrates that Indonesia is not only an attractive investment destination but has also developed into a trusted investment management partner on the global stage.
