The bilateral meeting between Coordinating Minister for Economic Affairs Airlangga Hartarto and Japanese Minister of Economy, Trade and Industry Yasutoshi Nishimura in Detroit, United States, resulted in a commitment to resolve the Indonesia-Japan Economic Partnership Agreement (IJ-EPA) in September 2023. This wish was conveyed by President Joko Widodo to Japanese Prime Minister Fumio Kishida during the G7 Summit meeting in Hiroshima in May 2023.
According to Coordinating Minister Airlangga, the meeting between President Jokowi and the CEOs of Japanese companies had previously produced 5 Memorandums of Understanding (MoU) and 24 Letter of Intent (LoI). One of the agreed commitments is the handling of agriculture by Sumitomo Forest. With the target of completing the IJ-EPA in September 2023, the Government of Indonesia hopes to strengthen bilateral relations with Japan.
"We hope that the Indonesia-Japan Economic Partnership Agreement (IJ-EPA) can be completed in September 2023 before the 43rd ASEAN Summit," Airlangga said in a Bilateral Meeting with Japanese Minister of Economy, Trade and Industry Yasutoshi Nishimura on the sidelines of the Indo-Pacific Economic Framework for Prosperity (IPEF) Meeting in Detroit. United States, as stated in a statement received in Jakarta, Saturday, May 27.
Minister Nishimura expressed his hope that the completion of the IJ-EPA could be carried out in September 2023 or no later than November 2023. Japan sees 2023 as a special year because it is a celebration of 65 years of bilateral relations between Indonesia and Japan and 50 years of cooperation between ASEAN and Japan.
In the IPEF Ministerial Meeting on May 27, 2023, Minister Nishimura will announce a new form of assistance for IPEF member countries and hope that Indonesia and Japan can continue to work together in achieving the mutually beneficial IPEF agreement.
Japan also hopes to reach a similar agreement with Indonesia regarding critical mineral ingredients after previously successfully signing an agreement with the United States regarding mineral trading, which is important for electric vehicle batteries.
Cooperation between Indonesia and Japan in the development of electric vehicles will also get support through the ASEAN "Leaders' Declaration on Development Regional Electric Vehicle Ecosystem". In commemoration of the 50th anniversary of the ASEAN-Japan relationship, Minister Nishimura invited Coordinating Minister for the Economy Airlangga Hartarto and Minister of Industry Agus Gumiwang Kartasasmita to attend the ASEAN-Japan Business Week which will take place on 5-8 June 2023 in Japan.
This event will be a platform for the Indonesian Chamber of Commerce and Industry and the Japan External Trade Organization (JETRO) to hold important meetings and sign an agreement in the field of green industry.
Coordinating Minister Airlangga appreciated the invitation and ensured that Indonesia would send representatives from the government and business actors to attend the ASEAN-Japan Business Week. The two countries agreed to discuss concrete projects related to clean and green economy, such as the development of Japanese investment projects in supporting the development of hydrogen and blue and green ammonia technology in Indonesia.
During the bilateral meeting, Minister of Industry Agus Gumiwang Kartasasmita, Indonesian Ambassador to the US Rosan Roeslani, Sesmenko Perekonomian, and several officials from the Coordinating Ministry for the Economy and the Ministry of Industry were also present.
The commitment to resolve the Indonesia-Japan Economic Partnership Agreement (IJ-EPA) in September 2023 showed serious efforts from the two countries to deepen economic and trade cooperation. IJ-EPA is a bilateral trade agreement that covers various aspects, including market access, investment, technology cooperation, intellectual protection, and reducing trade barriers.
If the IJ-EPA is successfully completed, this will provide great benefits for both countries. Indonesia as one of the largest countries in ASEAN has great market potential for Japanese products. In contrast, Japan is one of the important trade partners and investors for Indonesia, which has contributed significantly to infrastructure development, manufacturing, and other sectors.
Through IJ-EPA, it is hoped that there will be an increase in investment, technology transfer, and sustainable economic growth for the two countries. In addition, this agreement can also strengthen ASEAN-Japan's position as a strong trading and investment partner, as well as encourage economic integration and regional development.
In an effort to realize a clean and sustainable economy, cooperation in the development of green technology such as hydrogen and sustainable ammonia will be an important step. Indonesia as a country with abundant natural resources and Japan as a country with technological advantages can support each other in accelerating the transition to clean energy.
The commitment shown by the two countries at this meeting was a positive step towards deepening bilateral relations, increasing economic cooperation, and achieving sustainable development goals. With the completion of the IJ-EPA which is expected in September 2023, Indonesia and Japan can strengthen their strategic partnerships in the economic and trade fields, as well as encourage inclusive and sustainable economic growth for both countries.
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