MANILA, Jan. 10 (Xinhua) -- The Philippines and Indonesia on Wednesday agreed to strengthen energy cooperation to safeguard energy security.
Energy ministers of the two countries signed a memorandum of understanding (MOU) on energy cooperation at the presidential palace in Manila, where Indonesian President Joko Widodo was received by his Philippine counterpart Ferdinand Romualdez Marcos.
Widodo arrived in Manila on Tuesday night for a three-day official visit.
The two sides agreed to facilitate cooperation between business sectors, particularly during critical supply constraints on energy commodities such as coal and liquefied natural gas.
The document will create a new synergy between the Philippines and Indonesia as the two countries work to achieve energy security, said Marcos, adding another bilateral MOU on science and technology "is nearing the completion phase as well."
Indonesia and the Philippines are the second and third globally regarding installed geothermal generation plants. Both are currently highly dependent on coal-fired power plants and seek an orderly transition to cleaner technologies.
The Philippines has been a dependable market for Indonesian coal, accounting for nearly 98 percent of total coal imports by the Philippines in 2022. However, the Indonesian government issued a coal export ban in 2022, forcing countries like the Philippines to scramble for alternative sources of coal and causing coal prices to spike.
The two countries are also major sources of minerals needed for energy transition and have vast potential for solar, wind and ocean energy production.
