Tuna-Lobster Exports To Bananas From Indonesia Will Be Free Of Import Duty To Japan

Minister of Trade Zulkifli Hasan. (Photo: Mery Handayani/VOI)

JAKARTA - The governments of Indonesia and Japan have agreed to extend the Indonesia-Japan Economic Partnership Agreement (IJEPA) which has been discussed since 2019.

With the extension and renewal of IJEPA, the export of fresh and processed products from Indonesia can be free of import duties to Japan.

For your information, IJEPA has previously been in effect since 2008, and is being updated to add points of cooperation between the two countries.

The ratification of IJEPA still has to go through a ratification process in the DPR, and it is stated in the Presidential Regulation (Perpres).

Trade Minister Zulkifli Hasan said the discussion and renewal of IJEPA was something historic for Indonesia.

He replied that the agreement was indeed discussed in a tough manner.

"Just recently, with the Japanese Foreign Minister, I signed this signature. Even though it's simple, this is something historic, 20 years old, we finished it today, which was tough on the agreement but it was finished this morning, I just signed with the Japanese Foreign Minister," he said at the Ministry of Trade office, Jakarta, Thursday, August 8.

The man who is familiarly called Zulhas said, with the extension and renewal of IJEPA, exports of Indonesian fresh and processed products such as tuna, skipjack, lobster, and shells can be duty-free to enter Japan.

In addition, said Zulhas, exports of fruits such as pineapple and bananas that were previously subject to import duties of up to 17 percent by Japan could also be free of import duties.

"This fruit is not finished, skipjack, lobster, and shells, fruit. Sometimes we go to the Philippines to Japan. This is finished, very important. Food and drinks, as well as organic chemicals," he explained.

Japan, continued Zulhas, will also open and improve market access to 112 tariff posts that were previously not provided.

Meanwhile, Indonesia has opened market access for the 25 tariff posts for the Land of Sakura.

"Improving market access for 25 tariff posts includes iron, steel, and automotive products, that is actually the main point in special manufacturing in the automotive sector. Trade in services, expansion of market access, banking, and developing capacity in the real estate and transportation sectors," he said.

Zulhas said he was optimistic that with the extension and renewal of IJEPA, the value of Indonesia's exports to Japan would increase by 60 percent in 2028.

The average project for increasing Indonesia's exports to Japan after the implementation of IJEPA is an average of 11.6 percent per year, very high. Indonesia's exports to Japan are predicted to reach 36 billion US dollars by 2028, an increase of approximately 58 to 60 percent of the export value in 2023," said Zulhas.

In the extension of IJEPA, said Zulhas, Indonesia and Japan also agreed on a chapter of e-commerce to facilitate trade development through electronic systems (PMSE).

In addition, Zulhas said, through the IJEPA Amendment Protocol, the two countries also agreed to discuss facilitation of the placement of Indonesian skilled workers for other professions, not limited to nursing professions and caregivers.

Movement of natural persons, addition of Indonesia's core, and caregiver in Japan, improvement of immigration and placement procedures, and the potential expansion of Indonesia's labor market in Japan," he said.