Philippines, Indonesia agree to bolster energy cooperation
MANILA, Philippines — Manila and Jakarta agreed to strengthen the energy cooperation between the two countries during the visit of Indonesian President Joko Widodo to the Philippines Wednesday.
The energy ministers of the Philippines and Indonesia signed a memorandum of understanding (MOU) on energy cooperation at Malacañan Palace, President Ferdinand Marcos Jr. announced in a joint briefing with Widodo.
“Our countries create a new synergy as we cooperate to achieve energy security,” Marcos said.
The Department of Energy (DOE) said that two countries had agreed to facilitate cooperation between their respective business sectors, “particularly during periods of critical supply constraints on energy commodities such as coal and liquefied natural gas.”
“The MOU also offers potential benefits across economic, environmental, and geopolitical dimensions through collaboration on energy transition, renewable energy, demand-side management, electric vehicles, and alternative fuels such as hydrogen, ammonia, and biofuels,” the DOE said.
Both the Philippines and Indonesia depend heavily on coal for electricity generation, with Manila sourcing the bulk of its imported coal from Jakarta. But both nations are moving to transition to cleaner energy sources.
The two countries are scaling up the development of policies and infrastructure to support the import and production of liquefied natural gas (LNG) as they seek to increase the share of the “transition fuel” in their energy mixes.
Climate and energy campaigners, however, argue that pivoting toward LNG is not an effective decarbonization strategy as it is primarily composed of methane—a more potent greenhouse gas.
The Philippines and Indonesia are also major sources of critical minerals needed for the energy transition such as nickel, and have vast potential for solar, wind and ocean energy production, the DOE noted.
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