Indonesia and Japan have strengthened their economic and trade ties by signing the Protocol of Amendment to the Indonesia-Japan Economic Partnership Agreement (IJEPA) on 8 August 2024. The agreement, signed by Indonesia’s Minister of Trade, Zulkifli Hasan, and Japan’s Minister of Foreign Affairs, Yoko Kamikawa, aims to enhance economic growth and prosperity for both nations. A key feature of the revised IJEPA is the improved market access for 112 Indonesian export products to Japan, including processed fish. This enhancement is expected to boost the competitiveness of Indonesian businesses against global competitors. The agreement also broadens cooperation in services trade, particularly in banking, e-commerce, and support for SMEs through digital platforms. It includes provisions for capacity building, training, and research, as well as the development of e-commerce. In addition to trade, both countries are committed to collaboration in various sectors, including the automotive industry, mold and dies, healthcare, creative economy, and real estate development. Japan has also pledged greater commitment to facilitating skilled labor access from Indonesia, extending beyond caregiving and nursing professions.
Indonesian Ambassador Heri Akhmadi, who attended the signing virtually, expressed optimism that the agreement will positively impact the economic and trade relations between the two countries. The IJEPA, originally implemented on 1 July 2008, was Indonesia’s first bilateral economic agreement. The recent Protocol of Amendment follows a comprehensive review in 2018 and marks a significant modernization of the partnership after five years of intensive negotiations. Japan is Indonesia’s fourth-largest trading partner, with total trade growing at an average of 9% annually over the past five years, reaching USD 37.3 billion in 2023. Indonesia has maintained a trade surplus with Japan, increasing by 13% from 2019 to 2023. Major Indonesian exports to Japan include coal, copper ores, nickel, electrical equipment, natural rubber, agricultural products, plywood, and paper products.
