Reuters

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Japan to coordinate on energy with Indonesia as Iran war disrupts supplies

TOKYO, March 31 (Reuters) - Japan and Indonesia have agreed to step up coordination ​on energy security, Japan's Prime Minister Sanae Takaichi said ‌on Tuesday, as the U.S.-Israeli war on Iran squeezes oil and gas supplies vital to Asia.

"In light of the Iran situation, the strategic importance of ​resources and energy security is once again being recognised ​globally. Indonesia is a major resource-rich nation," Takaichi said alongside ⁠Indonesia's President Prabowo Subianto after they met for talks in ​Tokyo.

The summit comes amid mounting concern over the widening Middle East ​conflict, which has disrupted shipments of oil and gas through the key Strait of Hormuz.

Indonesia is the world's biggest exporter of thermal coal for power ​generation, supplying about half of global exports. It is also a ​major liquefied natural gas exporter, with roughly a quarter of its shipments bound ‌for ⁠Japan.

Japan said on Friday it will allow utilities to increase the use of coal-fired power plants from next month to cushion any disruption to liquefied natural gas imports caused by the war in ​the Middle East.

Japan ​has also opened ⁠up its oil stockpiles, rolled out gasoline subsidies and is seeking energy supplies beyond the Middle ​East.

Japan and Indonesia would "make their best efforts to convince ​all ⁠parties (in the Middle East) to de-escalate" the conflict, Prabowo said. He also invited "Japan’s participation" in the Indonesian economy, including in critical minerals, rare ⁠earths, ​industrialisation and nuclear energy.

Neither leader gave details ​of how the two countries would coordinate in economic security.

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