The total trade value between Indonesia and Japan in 2023 reached USD 37.3 billion, with Indonesia recording a surplus of USD 4.2 billion. This figure significantly surpasses the pre-pandemic level of USD 341 million. In 2023, Indonesia's exports of palm kernel shells to Japan amounted to USD 550.98 million, marking a 40 percent increase from 2022. Additionally, wood pellet exports from Indonesia to Japan were recorded at USD 10.2 million, a 45% rise compared to the previous year. Conversely, Japanese investment in Indonesia from 2019 to 2023 totaled USD 18.3 billion, primarily in the energy, automotive, and property sectors. In 2024, Indonesia's participation in Foodex Japan resulted in trade transactions worth USD 10.6 million, involving products like sweet potatoes, eggplants, poultry, snacks, cooking spices, and herbs. In 2023, 79 Japanese buyers attended the Trade Expo Indonesia (TEI), generating transactions worth USD 337 million. Deputy Minister of Trade Jerry Sambuaga is optimistic about further enhancing Indonesia-Japan bilateral trade relations. "New breakthroughs in economic and trade cooperation between Indonesia and Japan can be achieved through the Indonesia-Japan Economic Partnership Agreement (IJEPA)," he said during a meeting with Deputy General Manager of Japan Chamber of Commerce and Industry (JCCI) Tetsuya Matsuoka in Tokyo on 2 July. The meeting was also attended by Trade Attaché Tokyo Merry Astrid Indriasari.
Indonesia appreciates JCCI's support in strengthening economic and trade cooperation. Both countries are expected to sign the IJEPA Protocol Amendment soon, following five years of negotiations since the General Review in 2019. "We hope that businesses can leverage IJEPA as it offers numerous market access opportunities for both countries," explained Deputy Minister Jerry. The IJEPA Protocol Amendment is currently in the legal review and draft finalization stage, covering Trade in Goods, Trade in Services, Electronic Commerce, Movement of Natural Persons, Cooperation, Intellectual Property, and Government Procurement. The protocol is expected to be finalized by mid-July 2024, followed by internal government processes. The signing by Indonesia’s Minister of Trade and Japan’s Minister of Foreign Affairs is targeted for September 2024. Deputy Minister Jerry highlighted that the IJEPA, signed on 20 August 2007 and effective from 1 July 2008, is Indonesia’s first bilateral agreement, showcasing Japan as a vital trade and investment partner for Indonesia.
