Japan, Indonesia Agree on Energy Security Cooperation

Japanese Prime Minister Sanae Takaichi and Indonesian President Prabowo Subianto agreed on Tuesday to strengthen economic ties and enhance cooperation on energy security during talks in Tokyo, as disruptions from the ongoing war in the Middle East threaten vital oil and gas supplies to Asia.

The leaders' meeting comes amid escalating tensions in the region, where a U.S.-Israeli conflict with Iran has disrupted shipments through the Strait of Hormuz, a critical chokepoint for global energy trade. Japan depends on the Middle East for more than 90 percent of its crude oil imports, while Indonesia sources about 20 to 25 percent of its crude through the strait. Both nations face rising energy prices and supply uncertainties, prompting Japan to release state and commercial oil reserves this month, introduce gasoline subsidies, and permit utilities to increase reliance on coal-fired power plants starting next month to offset potential shortfalls in liquefied natural gas imports.

"In the wake of the Iran situation, the importance of resources and energy security is being recognized globally," Takaichi said at a joint news conference. She highlighted Indonesia's role as a resource-rich...