Japan, Indonesia to Cooperate on Power, Port Projects, Earn Carbon Credits
Japan and Indonesia will cooperate on developing power, port and road projects as part of more than $89 billion of investment in the southeast Asian country, according to government documents.
Japan will provide funds and advice on coal and geothermal projects and associated infrastructure for so-called economic development corridors in Indonesia, according to the documents circulated at a forum in Tokyo today, attended by government officials and executives.
Indonesia has identified six economic corridors in Sumatra, Java and other islands to boost growth and alleviate transport bottlenecks and power shortages. Japan wants to spur growth by exporting technologies for more efficient coal power plants, smart grids and railways as demand for goods and services declines at home.
Investment in the so-called Eastern Sumatra-Northwest Java and Northern Java corridors is estimated to reach $89.1 billion, according to an Indonesian government document.
By developing Indonesian electricity projects, Japan is aiming to earn carbon credits to offset polluting emissions blamed for global warming. Japan has pledged to cut emissions of carbon dioxide by 25 percent from 1990 levels by 2020.
Mitsubishi Corp. and Marubeni Corp. were among companies selected by Japan’s trade minister on Aug. 2 to conduct feasibility studies for pollution-cutting projects to earn carbon credits in Indonesia and other Asian countries.
To contact the reporters on this story: Tsuyoshi Inajima in Tokyo at tinajima@bloomberg.net
To contact the editor responsible for this story: Amit Prakash in Singapore at aprakash1@bloomberg.net.
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