Tokyo, August 8 (AseanAll) — "We hope that the IJEPA agreement can be utilized promptly by businesses to support the economic growth and prosperity of both countries," emphasized Indonesian Minister of Trade Zulkifli Hasan during the signing of the Indonesia-Japan Economic Partnership Agreement (IJEPA) Protocol Amendment, alongside Japanese Foreign Minister Yoko Kamikawa on August 8,2024.
This strategic economic agreement encompasses several crucial aspects in the Indonesia-Japan trade relations. One of the highlights of the agreement is the improvement of market access for Indonesian export products to Japan across 112 tariff lines, including processed fishery products. This is expected to enhance the competitiveness of Indonesian businesses against competitors.
In the services trade, the agreement also provides opportunities for closer cooperation in the banking sector and trade through electronic systems, facilitation for SMEs in utilizing digital platforms (marketplaces), capacity building, training, research, and e-commerce utilization.
Both countries are also ready to collaborate in various sectors including automotive, mold and dies, enhancing caregiver competency, developing medical equipment testing facilities, creative economy, and real estate capacity building.
Furthermore, Japan has committed to broader access for employment and facilitating the placement of skilled workers from Indonesia, not limited to caregivers and nurses.
Ambassador of Indonesia to Japan, Heri Akhmadi, who participated in the virtual signing, added, "I hope this agreement will bring positive benefits for the economic and trade enhancement of both countries. Indonesia's representatives in Japan are ready to oversee its implementation."
The IJEPA agreement is Indonesia's first bilateral economic agreement implemented since July 1, 2008. Following the Comprehensive Review in 2018, both countries agreed to enhance their bilateral economic relations under a more modern framework through the Protocol Amendment.
This signing marks a historic moment after lengthy and intensive negotiations over five years. The substantive conclusion of the IJEPA Protocol Amendment negotiations was announced by Indonesian President Jokowi and Japanese Prime Minister Fumio Kishida on December 16, 2023, in Tokyo.
Japan is Indonesia's fourth largest trading partner. The total trade value over the past five years has increased by 9% annually from USD 31.7 billion (in 2019) to USD 37.3 billion (in 2023). Indonesia has experienced a trade surplus with Japan over the past five years, with a 13% increase in the 2019-2023 period. Key Indonesian exports to Japan include coal, copper ores, nickel, electrical equipment, natural rubber, agricultural products, plywood, and paper products.
