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
Japanese Prime Minister Shinzo Abe at a meeting with visiting Indonesian Vice President Jusuf Kalla in Tokyo on Friday expressed hope that the two contries could sign an Economic Partnership Agreement (EPA) as soon as possible.
Indonesia will seek Japan’s confirmation regarding the settlement of the Economic Partnership Agreement (EPA) with that country, trade minister Mari Elka Pangestu said on Wednesday.
Indonesia could suffer losses as great as, or even worse, than those that other developing countries have suffered as a result of entering into free trade agreements, such as the proposed Economic Partnership Agreement (EPA) with Japan, says an international NGO.
For Indonesia, the only issue left is about cooperation assistance for increasing its industrial capacity. Japan, meanwhile, is still awaiting the result of the discussion on the country’s draft capital investment law before it would sign the EPA.
"We have finished about 90 percent of the content. But regarding quality, the remaining 10 percent is of much greater significance," Indonesia’s chief negotiator Sumadi Brotodiningrat said.
Japan has vowed to exempt duty on 51 aquatic products from Indonesia within the next three to five years after the signing of the Economic Partnership Agreement, a newspaper reported Tuesday.
The Japanese government urged that guarantee for supplying Indonesia’s liquefied natural gas to Japan be attached to the economic partnership agreement (EPA) between both countries. However, the Indonesian government has not complied with this request.
Tokyo and Jakarta announced Tuesday they have agreed on an overall framework for liberalizing bilateral trade, including Japanese autos and Indonesian natural gas and workers.
Japan will accept nurses, care workers and hotel trainees from Indonesia under a bilateral economic partnership agreement in the final stages of talks, the Nihon Keizai Shimbun reported.
Indonesia is hoping for a "mutually beneficial" spirit in the economic partnership agreement (EPA) it plans to sign with Japan during President Susilo Bambang Yudhoyono’s visit later this month to Tokyo, and will seek compensation for the economic imbalances that arise from the deal.