Japan leveraging infrastructure, innovation for strategic engagement
Felix Kim
Recognizing the transformative potential of economic growth and technological innovation, Japan is engaging with emerging market countries across the Indo-Pacific to develop infrastructure, enhance business environments and increase sustainability. The Japan International Cooperation Agency (JICA) plays a pivotal role in these efforts, supporting projects in sectors critical to sustainable development.
Japan’s approach, including incorporating official development assistance (ODA), aims to empower local economies while promoting Japanese technological and industrial solutions. The strategy benefits recipient nations while also opening markets for Japanese businesses.
“We will further strengthen diplomatic efforts, including by expanding our ODA in various forms, while engaging in a strategic use of it,” Japanese Prime Minister Fumio Kishida said in May 2023, announcing Tokyo’s intention to tap into more than $75 billion in public and private funds by 2030 to address major infrastructure demands in the Indo-Pacific.
Rail infrastructure is a key area of Japan’s engagement. In the Philippines, the JICA, along with Japan’s Sumitomo Corp. and Hankyu Corp., agreed to invest in the operation and maintenance of the Manila Light Rail Transit System Line 1, the agency stated in May 2024. The project is considered essential for alleviating traffic congestion in and around the Philippine capital, one of Southeast Asia’s most congested metropolitan areas. The extension of the metro line by about 7 kilometers, with five new stations set to open by late 2024, is expected to enhance urban connectivity and support regional development.
Also in May 2024, the JICA signed a loan agreement with Indonesia to build the Jakarta Metropolitan Mass Rapid Transit East-West Line. The project will address the capital city’s growing transportation demands and alleviate congestion. Japanese technology will be used in the civil engineering project, according to the agency.
The JICA’s focus on enhancing regional connectivity and promoting socioeconomic development is exemplified by its projects in northeast India, an ethnically diverse region where the mountainous terrain presents challenges for infrastructure development. The agency is financing the construction of more than 750 kilometers of roads to ease travel in the region and strengthen economic ties with neighboring countries such as Bangladesh.
“The newly opened two-laned road, which was wide and paved, improved access from remote villages to the central cities, cutting down on travel time that once took hours,” Saito Mitsunori, the agency’s chief representative in India, said in a news release. “The smooth movement of people and goods has had a significant impact on the lives of local residents.”
The JICA also is strengthening collaboration with the international Organisation for Economic Co-operation and Development (OECD), including signing a memorandum of cooperation in late April 2024 to promote economic and social development in Southeast Asia and the broader Indo-Pacific. The partnership seeks to address areas such as climate change mitigation, resilient supply chains and the digital economy.
Kishida highlighted the collaboration during the 10th anniversary celebrations for the OECD’s Southeast Asia Regional Program in Paris in May 2024. He announced the establishment of a framework for a sustainable future through cooperation between the JICA and the OECD.
“Japan will grow together with other countries,” Kishida said.
Felix Kim is a FORUM contributor reporting from Seoul, South Korea.
