Japan's ruling Liberal Democratic Party (LDP) president Sanae Takaichi has officially become the country's new prime minister after finding a new coalition partner for the minority government, following the collapse of the LDP's 26-year alliance with political party Komeito.
Japan's parliament elected former economic security minister Takaichi as the country's 104th prime minister on 21 October, making her the first woman to lead Japan's cabinet. She replaces Shigeru Ishiba, who officially resigned on 21 October, having served as premier since 1 October 2024.
Takaichi's victory comes after she agreed to form a coalition government with the Japan Innovation Party, an opposition party known as Ishin, on 20 October. She signed the deal with Ishin representative and Osaka governor Hirofumi Yoshimura and party co-leader Fumitake Fujita.
Takaichi, who was named as LDP leader on 4 October, faced challenges in seeking her party's support, especially after Komeito dissolved its coalition with the LDP on 10 October, blaming the LDP's funding scandals.
The breakdown of the LDP-Komeito coalition caused political turmoil. Opposition parties including the Ishin, the Democratic Party For the People, as well as the Constitutional Democratic Party of Japan (CDPJ) — the country's largest opposition party — held discussions about possible tie-ups for the leadership race, especially as the LDP lacks a majority in both houses of parliament.
The Ishin signed the coalition deal with the LDP, after ending policy talks with its opposition peers on forming alliances to change the government. Takaichi agreed on 12 key policy priorities, which the Ishin had proposed and said were requisites for it to be in favour of Takaichi as prime minister. The priorities included economic measures, national, economic and social securities, energy, political reform, among others.
Energy policies
The LDP's energy policies will generally be intact despite the Ishin's 12 policy items. Both parties are pushing to develop next-generation reactors including fusion power, along with restarting existing ones, to meet expected increases in electricity demand.
Takaichi is looking to nuclear power to ensure stable electricity supplies at relatively low costs. Meanwhile, the CDPJ has opposed replacing nuclear reactors or building new ones, making it difficult for the party to form a coalition with the LDP, as well as opposition parties.
The Ishin also supports the development of renewable energy, including geothermal power, similar to former premier Ishiba who pushed to develop Japan's geothermal capacity. But the Ishin also aims to regulate the installation of large-scale solar facilities that will lead to deforestation.
The Ishin also aims to speed up the development of ocean resources in the national territory, in line with the LDP's strategic energy plan.
Counter-inflation measures
The LDP-Ishin coalition could pass a bill to abolish the provisional gasoline tax during the extraordinary diet session, over 21 October-17 December, to mitigate rising inflation.
Japan's gasoline tax rate is currently set at ¥53.80/litre (36¢/litre) — or a ¥28.70/litre base rate plus a ¥25.10/litre extra rate. Opposition parties, including the Ishin, have repeatedly requested the removal of the additional tax, despite the move likely to result in higher greenhouse gas emissions because of increased use of motor fuel.
The two parties are also hoping to enact a supplementary budget during the current extraordinary diet session to secure funding to resume subsidies for gas and electricity to help ease the burden on consumers. Tokyo provided such grants to consumers during July-September to ride out the summer heat. The LDP also agreed to consider carrying out the Ishin's proposal of abolishing consumption tax on food and beverage for two years, as part of the coalition deal.
