Jakarta (ANTARA) - Indonesia and Japan jointly announced an initiative toward realizing the Asia Zero Emission Community (AZEC) concept on the sidelines of the G20 Summit in Bali.

Both countries believe that Asia, as the hub of global economic growth, will become a driving force for the world economy as well as a model for cooperation in realizing clean, sustainable, just, affordable, and inclusive energy transitions while taking into account different national circumstances, the Japanese Embassy in Jakarta noted in a statement on Wednesday.

Japan and Indonesia shared the view that security of supply, affordability, and being people-centric are the main keys in the energy transition process to achieve the goal of carbon neutrality, or net zero emission, to enable this region to lead the global energy transition process without compromising on economic development.

Hence, both countries also view that energy transition will drive economic growth and invite other Asian nations to join the initiative.

Moreover, both countries believe that mutually beneficial cooperation and collaboration in sharing experiences and capacities are the key to realizing the AZEC concept.

Japan echoed its readiness to assist Indonesia by mobilizing resources and funding from Japanese public institutions along with Indonesian parties to support the energy transition process in Indonesia, as part of the AZEC cooperation framework.

Nippon Export and Investment Insurance (NEXI) will sign an amendment of the memorandum of understanding (MoU) that is aimed at securing the provision of financing insurance of up to US$500 million to support the efforts of PLN as the Indonesian state-owned fully integrated electric utility company to implement energy transition.

Japan Bank for International Cooperation (JBIC) and PLN have also signed an MoU to promote sustainable energy transition through collaboration between PLN and the Japanese business community to strengthen partnerships in the deployment of potential renewable energy projects and technology to reduce emission.

The cooperation is not limited to the aforementioned activities and will continue to be developed by involving more parties.

Furthermore, the governments of Indonesia and Japan are optimistic that the developing AZEC cooperation would pioneer the model of cooperation in Asia.

"We (Japan and Indonesia) reiterate our invitation to other Asian countries in joining these collaborative efforts to accelerate energy transitions in Asia," the Japanese Embassy noted in its statement.

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Reporter: Yuni Arisandy Sinaga
Editor: Sri Haryati
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