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
Photo: Infernal Elf / CC BY-NC 2.0
Japan and Indonesia agreed on Wednesday to begin negotiations over a free trade agreement (FTA) as early as next month, as Tokyo tries to secure regional clout through trade deals in Southeast Asia.
Indonesia President Susilo Bambang Yudhoyono and Japan Prime Minister Junichiro Koizumi are set to officially begin negotiations on a bilateral Economic Partnership Agreement (EPA) during Susilo’s visit to Japan next week, a minister said.
Indonesia hopes to expand farm product exports to Japan through a bilateral free trade agreement, on which the two countries are soon expected to launch formal negotiations.
Japanese Prime Minister Junichiro Koizumi is scheduled to sign an investment agreement with President Susilo Bambang Yudhoyono during the latter’s visit to Japan later this month.
The Japanese and Indonesian governments have agreed to enter bilateral negotiations in the near future toward reaching a free trade agreement in about one year. Among the areas that will be discussed are agricultural and industrial products, natural gas and the movement of people.
The public, along with NGOs, academics and business groups — both pro- and anti-free trade — should be well-informed about the development of the Indonesia-Japan EPA.
A free trade agreement (FTA) between Indonesia and Japan, which has been initiated by the two governments, will not pose a threat to a similar trade deal currently being developed between Japan and Southeast Asian countries, an official said on Monday.
Indonesia and Japan are scheduled to hold a two-day meeting to discuss a possible bilateral trade agreement on Monday.
The governments of Japan and Indonesia are mulling a new economic agreement, which would see the latter offering Japanese firms incentives to invest here.
Indonesian President Susilo Bambang Yudhoyono expressed his commitment Saturday to continue talks for an economic partnership with Japan, the head of a visiting delegation of Japanese business leaders said.