Improved Bilateral Economic Agreements
Indonesia and Japan have successfully concluded negotiations on protocols to enhance their bilateral economic agreements, according to Indonesia’s Foreign Minister. In a statement, Minister Retno Marsudi announced that the two countries have agreed to the removal of trade barriers, with Japan opening up its markets to Indonesian products. This includes the elimination of tariffs on processed fishery items. Furthermore, both nations are set to strengthen their ties in the banking sector. The amended Indonesia-Japan Economic Partnership Agreement (IJEPA) is expected to be implemented by the first quarter of 2024, pending formal signing and ratification by their respective parliaments.
President Jokowi’s Meeting with Prime Minister Kishida
The announcement from Minister Retno came after Indonesian President Joko Widodo, popularly known as Jokowi, had a bilateral meeting with Japanese Prime Minister Fumio Kishida. The meeting took place during a Tokyo summit commemorating the 50th anniversary of Japan’s relationship with the Association of Southeast Asian Nations (ASEAN). President Jokowi emphasized the significance of Jakarta and Tokyo’s agreement on critical minerals, as Indonesia seeks to establish itself as a major player in the global electric vehicle (EV) battery supply chain.
Maritime Capability Boost and Security Assistance
In addition to the trade agreement, Japan has provided Indonesia’s coastguard with a patrol vessel valued at 9 billion yen ($63 million). This contribution aims to assist Indonesia in strengthening its maritime capacity. Similarly, Japan and Malaysia signed a security assistance deal that includes a 400 million yen grant to enhance Malaysia’s maritime security. These collaborations reflect the efforts of Asian nations to address the growing assertiveness of China.
Support for Gaza Conflict Resolution
During their meeting, President Jokowi and Prime Minister Kishida also discussed the ongoing conflict in Gaza. President Jokowi reiterated his support for a permanent ceasefire and sustainable humanitarian aid to alleviate the situation.
By removing trade barriers and fostering stronger economic cooperation, Indonesia and Japan are poised to deepen their partnership and capitalize on new opportunities in various sectors.