Indonesia and Japan agree on removing more trade barriers

JAKARTA - Indonesia and Japan have agreed on the removal of more trade barriers, Indonesia's foreign minister said on Dec 16, after the two countries concluded negotiations on protocols to improve their bilateral economic agreements.

Japan will allow greater access for Indonesian products including by removing tariffs on processed fishery items, and the two countries will improve relations in the banking sector, Minister Retno Marsudi said in a statement.

Both sides are looking for the amended Indonesia-Japan Economic Partnership Agreement (IJEPA) to be implemented by the first quarter of 2024, though it still needs to be formally signed and ratified by their respective Parliaments after legal checks, she added.

Ms Retno's statement came after Indonesian President Joko Widodo held a bilateral meeting with Japanese Prime Minister Fumio Kishida on the sidelines of a Tokyo summit marking 50 years of ties between Japan and Asean.

Indonesia's trade ministry previously said Jakarta had asked Tokyo to eliminate tariffs on its canned tuna exports during the negotiations, which were intended to build on the IJEPA first signed in 2007.

Jokowi - as the Indonesian President is popularly known - in his meeting with Mr Kishida also highlighted the importance of Jakarta and Tokyo's agreement on critical minerals as Indonesia tries to position itself as an important player in the global electric vehicle (EV) battery supply chain, Ms Retno said.

Japan has also provided Indonesia's coastguard with a patrol vessel worth nine billion yen (S$84 million) to help Indonesia increase its maritime capacity, she said.

Earlier on Dec 16, Japan and Malaysia signed a security assistance deal including a grant of 400 million yen to boost Malaysia's maritime security, as Asian nations seek to counter an increasingly assertive China.

Mr Widodo and Mr Kishida also discussed the conflict in Gaza, and the Indonesian President reiterated his support for a permanent ceasefire and sustainable humanitarian aid. 

ALSO READ: Philippines' Marcos says tensions in South China Sea have increased

Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.