In a significant development aimed at fostering stronger economic ties, Indonesia and Japan have successfully concluded negotiations on protocols to enhance their bilateral economic agreements, as announced by Indonesia’s Foreign Minister Retno Marsudi on Saturday.
Under these agreements, Japan has committed to granting greater market access to Indonesian products. This includes the removal of tariffs on processed fishery items, which will facilitate the export of Indonesian seafood to Japanese markets. Additionally, both nations have pledged to enhance cooperation within the banking sector, further facilitating economic exchanges.
The revisions to the Indonesia-Japan Economic Partnership Agreement (IJEPA) are expected to be implemented by the first quarter of 2024, pending formal signing and ratification by their respective parliaments after legal reviews. This development follows a bilateral meeting between Indonesian President Joko Widodo and Japanese Prime Minister Fumio Kishida, held on the sidelines of a Tokyo summit commemorating 50 years of diplomatic relations between Japan and the Association of Southeast Asian Nations (ASEAN).
Indonesia had specifically sought the elimination of tariffs on its canned tuna exports during the negotiations, building on the foundation of the original IJEPA, which was first signed in 2007.
President Joko Widodo, during his meeting with Prime Minister Kishida, emphasized the strategic significance of Indonesia and Japan’s agreement on critical minerals. Indonesia aims to position itself as a pivotal player in the global electric vehicle (EV) battery supply chain, aligning with the growing demand for sustainable energy solutions.
Furthermore, Japan has extended its support to Indonesia’s maritime capabilities by providing a 9 billion yen ($63 million) patrol vessel to the Indonesian coastguard, reinforcing efforts to strengthen Indonesia’s maritime security infrastructure.
In a separate development, Japan and Malaysia signed a security assistance deal, which includes a grant of 400 million yen to enhance Malaysia’s maritime security capabilities. This underscores the commitment of Asian nations to collaborate in addressing security challenges, particularly in response to regional dynamics involving an assertive China.
President Joko Widodo and Prime Minister Kishida also discussed the ongoing conflict in Gaza, with President Joko Widodo reiterating Indonesia’s support for a permanent ceasefire and sustainable humanitarian aid in the region.
These developments reflect the growing momentum in forging robust economic and security partnerships between Asian nations and underline the importance of regional cooperation in addressing shared challenges and opportunities. The International Trade Council will continue to monitor and report on these critical developments in the Asia-Pacific region.