Indonesia’s Foreign Minister announced an agreement between Indonesia and Japan to reduce trade barriers. The two nations completed talks on protocols to enhance their economic agreements.
Japan will open its doors wider to Indonesian products, eliminating tariffs on processed fishery items. Additionally, improvements in the banking sector are on the cards, according to Minister Retno Marsudi’s statement.
The revised Indonesia-Japan Economic Partnership Agreement (IJEPA) aims for implementation by early 2024. However, formal signing and approval by their respective parliaments are pending after legal checks, as noted by Retno.
President Joko Widodo met Japanese Prime Minister Fumio Kishida during a Tokyo summit celebrating 50 years of ties between Japan and the Association of Southeast Asian Nations (ASEAN).
During negotiations, Indonesia urged Japan to remove tariffs on its canned tuna exports, building on the initial IJEPA signed in 2007.
Jokowi, in his meeting with Kishida, emphasized the significance of Jakarta and Tokyo’s agreement on critical minerals. Indonesia aims to establish itself as a key player in the global electric vehicle (EV) battery supply chain, according to Retno.
Japan also extended support by providing Indonesia’s coastguard with a patrol vessel valued at 9 billion yen ($63 million) to bolster Indonesia’s maritime capabilities.
In a separate development, Japan and Malaysia penned a security assistance pact. The deal includes a 400 million yen grant to enhance Malaysia’s maritime security, reflecting efforts among Asian nations to counter China’s growing assertiveness.