The Philippines and Indonesia have announced a significant move to bolster their collaboration in the energy sector, aimed at fortifying energy security in both nations.
During Indonesian President Joko Widodo’s visit to the presidential palace in Manila, an important milestone was reached as the energy ministers of both countries inked a memorandum of understanding (MOU) on energy cooperation. The meeting between President Widodo and his Philippine counterpart Ferdinand Romualdez Marcos emphasized the shared commitment to this initiative.
President Widodo’s three-day official visit, commencing on Tuesday night, served as the backdrop for this agreement.
The focal points of this agreement include the facilitation of cooperation within the business sectors, particularly in times of critical energy commodity supply constraints like coal and liquefied natural gas.
President Marcos highlighted that this document would foster a new synergy between the Philippines and Indonesia in their pursuit of ensuring energy security. He also mentioned that another bilateral MOU on science and technology is in its final stages of completion.
Both Indonesia and the Philippines hold prominent positions globally for their installed geothermal generation plants, ranking second and third, respectively. However, both nations heavily rely on coal-fired power plants and are actively seeking a smooth transition toward cleaner energy technologies.
Previously, Indonesia supplied a significant portion of coal to the Philippines, accounting for nearly 98 percent of its total coal imports in 2022. However, a coal export ban imposed by Indonesia in the same year led to a scramble for alternative coal sources by countries like the Philippines, causing a surge in coal prices.
Additionally, both countries serve as key sources of minerals crucial for the energy transition and possess immense potential for solar, wind, and ocean energy production. This agreement signals a joint effort to explore these renewable energy avenues.
