KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

Indonesia–Japan Business Forum Generates US$23.63 Billion in Trade, Kadin Chairman Urges Indonesia to Escape Middle-Income Trap

Tokyo, Japan – Amid the momentum of the official visit of the President of the Republic of Indonesia, Prabowo Subianto, to Japan, the Indonesian Chamber of Commerce and Industry (Kadin) held the Indonesia–Japan Strategic Partnership Forum titled “Indonesia–Japan Value Co-Creation: Building the Future of Energy, Industry, and Global Supply Chains” at The Imperial Hotel, Tokyo, on Monday (March 30, 2026).

The forum was organized by Kadin Indonesia in collaboration with the Japan External Trade Organization (JETRO), Japan’s Ministry of Economy, Trade and Industry (METI), and the Japan Business Federation (Keidanren), in partnership with the Indonesian Embassy in Tokyo (KBRI Tokyo), the Japan Chamber of Commerce and Industry (JCCI), the Japan Indonesia Association (Japinda), and Indonesia’s Ministry of Investment and Downstreaming/BKPM.

Attended directly by President Prabowo, the forum aimed to reaffirm and deepen strategic economic cooperation, particularly in priority sectors such as green and renewable energy, infrastructure and connectivity, manufacturing, the digital economy, as well as food and energy security. It also sought to identify concrete, bankable investment opportunities by leveraging cooperation frameworks such as the revision of the Indonesia–Japan Economic Partnership Agreement (IJEPA), the momentum of World Expo Osaka 2025, and the two countries’ comprehensive strategic partnership.

In his keynote address, President Prabowo emphasized that Japan is a highly important partner for Indonesia. The economic relationship between the two countries has been built over decades, with significant contributions from Japanese companies across various sectors. The President also expressed appreciation to Japanese business actors who have long invested in Indonesia and have been part of the nation’s development journey.

“Japan has consistently supported Indonesia’s economic development. Many of you in this room have been part of that journey. You have long been present in Indonesia. You understand Indonesia well—its people, its market, its culture, and its potential,” President Prabowo said, as quoted from the official website presidenri.go.id.

On that occasion, President Prabowo stated that his presence at the forum was not only to continue the existing partnership, but also to elevate it to a higher and faster level. He underscored the importance of close cooperation in an increasingly interconnected world, expressing confidence that strong economic partnerships will foster lasting peace and friendship.

“I am here not only to continue the partnership that already exists, but to take it to a higher and faster level. The world is becoming smaller. There is no option but close cooperation in all fields. I believe that strong economic relations and partnerships will lead to lasting peace and friendship. If we share common interests, we will safeguard both the present and the future,” he said.

Meanwhile, Chairman of Kadin Indonesia, Anindya Novyan Bakrie, noted that although Indonesia–Japan relations have been long established, future challenges require more progressive steps, particularly to help Indonesia escape the middle-income trap.

“Indonesia must break out of the middle-income trap. One way to achieve this is through investment and innovation, so that growth can exceed previous levels,” said Anindya, commonly known as Anin.

He also highlighted the importance of resilience and adaptability among businesses amid global uncertainty, including the impact of geopolitical conflicts on the global economy.

“We understand and are sensitive to the current situation, especially as we navigate the consequences of conflicts. However, we believe there is still a way forward. This is something both countries can further discuss to enhance cooperation. Ultimately, it is about how we can sustain our businesses,” he added.

Chairman of Kadin Indonesia’s Japan Bilateral Committee, Muhammad Lutfi, stated that future Indonesia–Japan relations should continue to focus on strengthening investment.

“The Indonesia–Japan partnership going forward must continue to promote investment toward concrete value co-creation, where collaboration in industry, energy, and global supply chains will directly drive Indonesia’s growth, innovation, and competitiveness,” Lutfi concluded.

During the forum, a number of strategic memoranda of understanding (MoUs) were also announced in the presence of President Prabowo Subianto. These agreements span sectors ranging from energy and industry to finance and technology, with total bilateral trade reaching approximately USD 23.6 billion. Among them are:

  1. An MoU between the Japan Chamber of Commerce and Industry (JCCI) and Kadin Indonesia on cooperation in trade and investment.
  2. An MoU between INPEX and PT Pertamina (Persero) on the development of the Abadi Gas Field in the Masela Block, Indonesia.
  3. An MoU between INPEX and PT Pertamina Hulu Energi on potential upstream oil and gas cooperation in Indonesia and Southeast Asia.
  4. An MoU between Hayashi Kinzoku Co., Ltd. and PT Eblo Teknologi Indonesia Development on developing a semiconductor ecosystem, including chip design, manufacturing, and AI.
  5. An MoU between INPEX and PT Supreme Energy Rajabasa on the development of the Rajabasa geothermal power project.
  6. An MoU between PT Bank SMBC Indonesia and PT Pegadaian to support the national gold ecosystem and financial inclusion.
  7. An MoU between 2Way World and PT Nose Herbal Indo on the development of the Indonesia–Japan Strategic Beauty Partnership.
  8. An MoU between SMBC Aviation Capital, Danantara, and Mandiri Investment Management on the establishment of an aviation leasing fund.
  9. An MoU between JETRO and Danantara Investment Management to strengthen investment cooperation.
  10. An MoU between PT Kaltim Methanol Industri and PT Pupuk Kalimantan Timur on methanol production utilizing CO₂ emissions (carbon capture utilization/CCU).
  11. An MoU between JICA and the Government of Indonesia on the Hululais geothermal power plant project.

Also present at the forum were Coordinating Minister for Economic Affairs Airlangga Hartarto; Minister of Investment and Downstreaming/Head of BKPM and CEO of Danantara Rosan P. Roeslani; Minister of Energy and Mineral Resources Bahlil Lahadalia; Minister of Foreign Affairs Sugiono; Presidential Special Envoy for Climate and Energy Hashim S. Djojohadikusumo; and several Kadin Indonesia executives and representatives.

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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry