Indonesia’s newly established sovereign wealth fund Danantara has signed an agreement with the Japan Bank for International Cooperation (JBIC) to unlock investment opportunities in decarbonization and circular economy initiatives, according to an announcement on Friday.
Danantara and JBIC will jointly identify and co-develop high-priority projects in areas such as renewable energy generation, power transmission, water and wastewater management, sustainable digital infrastructure like green data centres, and healthcare.
The agreement also paves the way for a wide range of financing options—spanning debt, equity, guarantees, and other tailored solutions—designed to support the development of large-scale strategic projects across Indonesia.
“This partnership with JBIC is a strong signal of international confidence in Indonesia’s green transition agenda. At Danantara, we are committed to mobilizing strategic capital that aligns with national development priorities while meeting global benchmarks for sustainability, impact, and governance,” said Rosan Roeslani, CEO of Danantara Indonesia in the statement.
The collaboration with JBIC is part of Danantara’s broader strategy to build an international coalition of sovereign wealth funds and global investors. Previously, Danantara has partnered with institutions such as the Qatar Investment Authority to support downstream industries and renewable energy, Abu Dhabi’s ADQ to drive logistics, healthcare, and food security projects, and Saudi Arabia’s ACWA Power for initiatives in gas-to-power, green hydrogen, desalination, and renewable energy.
These partnerships provide more than just long-term funding—they also open doors to global technology, specialized expertise, and risk-mitigation tools that are essential for advancing Indonesia’s infrastructure and energy transition.
The agreement with JBIC builds on Japan’s deepening involvement in Indonesia’s green transition, with Japanese investors already playing an important role in the country’s sustainability projects. Among them is a floating solar power plant backed by TEPCO Renewable Power, Morimitsu Industry, and ExBROAD, reflecting growing interest in scalable clean energy solutions. In Bogor, railway operator Kishu Tetsudo Co. Ltd. is developing a low-emission tramway system aimed at easing congestion and cutting carbon emissions in urban transit.
Japan also supports Indonesia’s battery energy storage, with firms like Gotion Japan and Greenbank Japan partnering with local players. JBIC and other Japanese entities have further backed geothermal and hydropower projects in Central Java, South Kalimantan, and West Sumatra. Beyond energy, Tokyo’s involvement is visible in circular economy initiatives, including waste-to-RDF conversion and sustainable seaweed farming in South Sulawesi.
