New trade agreement between Indonesia and Japan: New era in economic partnership

On Thursday, Indonesia and Japan reached an agreement to amend their economic partnership to reduce or eliminate trade barriers. The agreement is expected to boost trade activities between the two countries. The new agreement is scheduled to be ratified next year.

Under the revised Indonesia-Japan Economic Partnership Agreement (IJEPA), Japan will reduce import tariffs on 112 Indonesian products, including seafood, fruits, food and beverages. This tariff reduction is expected to increase the competitiveness of Indonesian products in the Japanese market.

Indonesia will provide better market access for 25 Japanese products such as stainless steel and automobiles. The Indonesian Ministry of Trade said that these arrangements will make trade relations more balanced and support economic growth.

According to the Indonesian Ministry of Trade, the changes are expected to significantly boost Indonesian exports to Japan. Exports are estimated to increase from 20.8 billion USD in 2023 to 35.9 billion USD by 2028.