Indonesia, Japan resume free trade negotiations
18 April 2006
Indonesia, Japan resume free trade negotiations
The Jakarta Post, Jakarta
Indonesia and Japan began their fourth round of official negotiations for a bilateral trade and economic cooperation agreement Monday, and hope to reach a basic accord by the end of the year at the latest.
In the five days of talks being held in Tokyo, the respective delegations will be led by Japanese Deputy Foreign Affairs Minister Mitoji Yabunaka and the former Indonesian ambassador to the U.S. and Japan, Soemadi DM Brotodiningrat.
In the opening address of the meeting, Yabunaka said he hoped the two sides would push ahead with the negotiations so that a deal could be clinched as soon as possible.
"Time is very important so as to demonstrate to the world that this partnership between us is working well," he was quoted as saying by the Kyodo News agency.
Meanwhile, Soemadi stressed that the substance of the agreement was just as important, and called on the two sides not to sacrifice content by trying to seal an agreement too hastily.
Indonesia and Japan agreed last July to begin working toward the signing of an Economic Partnership Agreement (EPA), a comprehensive bilateral economic agreement that would include not only the liberalization of trade in goods and services, but also cooperation in the fields of investment, competition policies and the movement of people.
Monday’s round of talks follows those in February, October and July, after the two countries wrapped up a preliminary joint study for the EPA, agreeing to hold official negotiations every two months, with a deal being expected within the next two years.
During the preliminary talks, Indonesia requested Japan’s assistance in developing its local support industries, and agricultural and fisheries sectors, and to grant employment access to its unskilled workers.
Japan, meanwhile, requested that Indonesia overhaul its investment rules, eliminate tariffs on vehicles and auto parts, and ensure more stability in energy exports to Japan.
Japan is Indonesia’s largest trading partner, with two-way trade amounting to US$24.9 billion last year, with an $11.1 billion surplus in Indonesia’s favor. Japan is also among Indonesia’s largest investors, with approved investment plans amounting to $1.68 billion in value last year.
Indonesia is in a race with other countries in the region to clinch free trade agreements (FTA) with Japan. Singapore already signed one in 2002, while Malaysia, Thailand and the Philippines are expected to do likewise this year.
China and Korea are also engaged in FTA talks with the ASEAN states.
