Japan proposes text on resources cooperation with Indonesia for FTA
Friday April 21, 2006
Japan proposes text on resources cooperation with Indonesia for FTA
(Kyodo) — Japan and Indonesia wrapped up their fourth round of official negotiations on a bilateral free trade agreement in Tokyo on Friday, with Japan proposing for the first time a draft clause in the FTA which calls for bilateral cooperation on mineral resources, Japanese officials said.
Under the proposed clause, Indonesia would provide Japan with stable supply of resources such as natural gas and oil, while Japan would provide technological cooperation on resources development, the officials said.
During previous talks, Japan asked Indonesia to improve its investment climate for energy projects and create a framework for stable energy supply to Japan.
Indonesia is a major provider of energy to Japan, which seeks to maintain access to the country’s oil, natural gas and other resources.
According to the officials, Tokyo and Jakarta are scheduled to hold experts’ meetings in Jakarta in June to discuss issues such as Japan’s proposal, after which they will decide on the date of their next round of talks with a view to reaching a basic accord by the summer as planned.
Deputy Japanese Foreign Minister Mitoji Yabunaka and former Indonesian Ambassador to Japan and the United States Soemadi Brotodiningrat headed the respective delegations in the latest talks which lasted for five days from Monday.
The two countries launched the free trade talks in July last year with the aim of finishing the process in less than two years. They have basically agreed to hold official FTA talks every two months.
Japan and Indonesia have entered into substantial negotiations on lowering and eliminating tariffs on vehicles and lumber, among other things, by exchanging lists of requests and offers.
They are also negotiating over investment and services trade liberalization, as well as Japan’s cooperation programs for capacity-building in Indonesia.
Indonesia is seeking improved access for its labor force to the Japanese market, particularly care helpers for the elderly, seamen and factory workers, the officials said.
