Philippines, Indonesia ink pact on energy cooperation

The Philippines and Indonesia on Wednesday signed an accord on strengthening the two Southeast Asian neighbors’ energy cooperation.

In a statement, the Department of Energy (DOE) signed a Memorandum of Understanding (MOU) with its Indonesian counterpart, the Ministry of Energy and Mineral Resources.

The accord was inked by Philippine Foreign Affairs Secretary Enrique Manalo, on behalf of the DOE, and Indonesia Foreign Affairs Minister Retno Marsudi, on behalf of the Indonesia Energy Ministry.

The MOU, signed in Malacañang, covers cooperation between the two Southeast Asian neighbors in the field of energy.

The signing of the accord was witnessed by President Ferdinand Marcos Jr. and Indonesian President Joko Widodo.

Marcos said the MOU was the fruit of the successful talks between the Philippines and Indonesia through the Department of Energy (DOE) and the Ministry of Energy and Mineral Resources of Indonesia.  

"Our ministries have worked hard and today we saw one of these works bear fruit as we witnessed the signing of the MOU on the Cooperation in the Field of Energy. Through this MOU, our countries create a new synergy as we cooperate to achieve energy security," Marcos said.

Memorandum of Understanding

Under the MOU, the Philippines and Indonesia 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 (LNG).

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 signing of the MOU reinforces and updates the long-term energy cooperation between the two countries. On the part of the Philippines, it is an offshoot of our President’s efforts to achieve higher energy security through energy diplomacy," said Energy Secretary Raphael Lotilla.

The DOE said its previous bilateral agreements reflected the dominance of state-owned companies in the power sector in the Philippines and the upstream sector including coal mining in Indonesia.

The role of the private sector in energy has significantly grown in both countries and adjustments were made to reflect the new realities, the Energy Department said.

Lotilla pointed out that Indonesia and the Philippines share common energy concerns and can benefit from heightened levels of cooperation.

Indonesia and the Philippines are second and third globally in terms of installed geothermal generation plants. — RSJ, GMA Integrated News