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Saturday, 29 June 2019 00:00

Indonesia-Japan Bilateral Meeting: Discuss the Settlement of the IJEPA General Review

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The Indonesian Minister of Trade, Enggartiasto Lukita with the Indonesian Minister of Industry, Airlangga Hartarto held a bilateral meeting with the Minister of Economy, Trade and Industry of Japan, Hiroshige Seko The Indonesian Minister of Trade, Enggartiasto Lukita with the Indonesian Minister of Industry, Airlangga Hartarto held a bilateral meeting with the Minister of Economy, Trade and Industry of Japan, Hiroshige Seko kemendag

Indonesian Minister of Trade Enggartiasto Lukita with Indonesian Minister of Industry Airlangga Hartarto held a bilateral meeting with the Minister of Economy, Trade and Japanese Industry Hiroshige Seko. The meeting discussed the completion of the General Review of the Indonesian Economic Partnership Agreement (GR-IJEPA) and the Regional Comprehensive Economic Partnership (RCEP) agreement. The meeting took place on the sidelines of the G20 Summit in Osaka, Japan, on Thursday (9/27).

"Me and Minister Seko have met three times this month. This is because Indonesia and Japan are important partners with various shared agendas in the field of trade, including bilateral issues GR-IJEPA and RCEP, "said the Minister of Trade. 

The Minister of Trade emphasized that Indonesia could benefit economically from GR-IJEPA and RCEP through the use of more open access to goods and services markets and the entry of investment and cooperation in increasing capacity and capacity.

"Seeing the magnitude of this potential, at the moment both parties are trying with every effort to reach a final agreement," he continued.
At this meeting, the two Ministers agreed to work hard so that RCEP multiregional negotiations could be completed before the end of 2019. "Me and Minister Seko agreed that the completion of RCEP was very important and would provide encouragement to trade cooperation amid the trade tensions experienced by the world lately, "Said the Trade Minister.

The bilateral meeting also discussed sector issues, such as the implementation of the New Manufacturing Industry Development Center (New MIDEC) cooperation, the development of the automotive industry, and Indonesian policies related to Hybrid Electric Vehicle (HEV).

On this occasion the signing of the Framework Document on New MIDEC was carried out under the IJEPA framework between the Minister of Industry and Minister Seko. Framework Document on New MIDEC is a program that can support industrial 4.0 programs. This is due to its comprehensive coverage, which includes the automotive, electronic, textile and food and beverage sectors with cross-sectoral programs which include workmanship, printing, metal welding, SME development, export and import promotion, and green and industrial industries 4.0.

"Indonesia welcomes the signing of the New MIDEC cooperation framework initiated under the IJEPA. New MIDEC will be a program to increase sustainable industrial sector cooperation with Japan. This is in line with industrial policy 4.0 which is being initiated by the government. This cooperation is also a capital to grow together for the future of the two countries, "concluded the Trade Minister.

In addition to conducting bilateral meetings, the Minister of Trade Engaged in attending the CEO Roundtable meeting and one on one business meeting. The meeting was also attended by Maritime Coordinating Minister Luhut Binsar Panjaitan, Minister of Industry, and Head of the Investment Coordinating Board Tom Lembong. In addition, 21 leaders of Japanese companies are investing in Indonesia.

GR-IJEPA Overview
IJEPA is the first bilateral trade agreement owned by Indonesia. This agreement was signed on August 20, 2007 in Jakarta and became effective on July 1, 2008. Based on mandate of article 151 of the IJEPA Agreement, Indonesia and Japan can conduct a review of the implementation and operationalization of the agreement in the fifth year since it was implemented. GR-IJEPA is a momentum to renegotiate the expansion of market access between the two countries, and increase economic cooperation.

The initial meeting (preliminary meeting) of the GR-IJEPA discussion was held in Jakarta on September 12, 2014 and the last (11th) meeting was held on March 26-29 2019 in Tokyo, Japan. At the last meeting, the two countries agreed to announce the completion of the GRIJEPA by the two ministers in the trade sector on the sidelines of the G20 Summit in June 2019 in Osaka, Japan.

Japan is the second largest export destination for Indonesia and ranks third as Indonesia's main import origin country. According to Central Statistics Agency data, in 2018, Indonesia-Japan trade reached USD 37.40 billion with a surplus for Indonesia amounting to USD 1.50 billion. During this period, Indonesia's exports to Japan amounted to USD 19.47 billion. Indonesia's mainstay export commodities to Japan are coal, ore and copper concentrates, precious metal waste and pieces, natural rubber, and insulated wire.

While Indonesia's imports from Japan were recorded at USD 17.97 billion. Import commodities include motor vehicle parts and accessories, semi-finished vehicles, printing machines, cars and other vehicles, and iron platinum rolls. (kemendag)

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