In July 2005, Japan and Indonesia formally began negotiations on a bilateral free trade and economic agreement. Japan has more investment tied up in Indonesia than in any other Southeast Asian country. And Tokyo is particularly concerned about access to Indonesia’s natural resources, especially gas and oil. Indonesia is currently Japan’s largest supplier of liquefied natural gas.
The two governments aimed to reach a deal by the end of 2006 but it took two years. The pact was signed on 20 August 2007 and went into effect on 1 July 2008. As with JPEPA, a small number of Indonesian nurses and healthcare workers are allowed into Japan to work temporarily under the agreement, provided they pass Japanese language examinations.
last update: May 2012
The Indonesian and Japanese governments are now working to complete the countries’ new economic partnership agreement, which is expected to be signed late this year.
In a much anticipated move, Japan has given a nod to Indonesia’s proposal to review an economic partnership agreement to further step up bilateral economic relations.
Indonesia has benefited less than expected from its economic partnership with Japan and has requested a review.
An Indonesia economist asks President Joko Widodo (Jokowi) to review all agreements on economic cooperation with other countries especially with Japan.
One of the key review points will be market access for Indonesian agricultural products and fishery output to the Japanese market, Trade Minister Muhammad Lutfi says
Indonesia and Japan have agreed to renegotiate their economic partnership agreements amid growing concern that the deals had failed to benefit both parties equally.
Indonesia has not reduced its import duties on certain Japanese cars as required under a trade agreement between the two countries, the Nikkei said.
Wahyudin dreams of becoming a full-fledged caregiver, if not a certified nurse, in Japan. But the Indonesian worker must first pass the required Japanese-language national certification examination, which is far from easy.
One of the first ever group of Indonesian nursing trainees — dispatched to Japan last year based on the Japan-Indonesia Economic Partnership Agreement — has dropped out, it has been learned.
Under a bilateral economic partnership agreement signed by Japan and Indonesia in August 2007, Japan is supposed to accept 1,000 Indonesian nurses and care workers over a two-year period. However, due to a lack of preparation, only about 200 Indonesian nurses and caregivers arrived in Japan in the first year.