Indonesia and Japan Forge Enhanced Economic Partnership

Indonesia and Japan have revised their economic agreement to reduce or remove trade barriers. Japan will reduce import tariffs on 112 Indonesian items, and Indonesia will improve market access for 25 Japanese products. The revisions are expected to significantly boost bilateral trade by 2028.

In a significant move, Indonesia and Japan have agreed to amendments to their economic agreement aimed at reducing or removing trade barriers, according to an announcement from Indonesia. This revision is anticipated to boost bilateral trade substantially.

The terms include Japan further reducing import tariffs on 112 Indonesian items, such as fishery products, fruit, food, and beverages, as stated by Indonesia's trade ministry. Concurrently, Indonesia will enhance market access for 25 Japanese products, including stainless steel and automotive, under the revamped Indonesia-Japan Economic Partnership Agreement (IJEPA).

Expected to be ratified next year, the new agreement also extends the term of employment for Indonesian nurses and caregivers in Japan, and may liberalize worker movement in other professions. Indonesian exports to Japan are forecasted to rise to $35.9 billion by 2028, up from $20.8 billion in 2023.

(With inputs from agencies.)