Indonesian, Japanese economic ministers discuss trade cooperation
04/09/2022 (Antara News) - Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto received Japanese Minister of Energy, Trade and Industry Nishimura Yasutoshi and they discussed trade and investment cooperation, Indo-Pacific Economic Framework (IPEF), and G20 Summit.
Through the Indonesia-Japan Economic Partnership Agreement (IJ-EPA), the two countries have made many achievements in their cooperation and renewed cooperation agreements, including increasing Indonesia's canned tuna exports to Japan with more competitive tariffs, increasing the import duty-free quota for the export of 4,000 tons of banana per year, and altering import duty-free conditions and adding the quota of pineapple exports.
"Hopefully, Japan will consider import duty tariffs for several commodities, including tuna fish, banana and pineapple," Airlangga said in a written statement released here on Sunday.
He further lauded Japanese private companies' intention to increase investment commitments by US$5.2 billion as a result of a meeting between President Joko Widodo and Japanese CEOs for the development of new capital city, Nusantara, automotive industry, electrical battery industry , steel industry, power plants and transportation infrastructures.
The palm oil sector was also discussed at the meeting. Indonesia hopes Japan will accept the certification of Indonesian Sustainable Palm Oil (ISPO) supply chain to boost Indonesia's palm oil exports to Japan.
Japan is waiting for the implementation regulation of new ISPO that will deal with palm oil downstream industry in Indonesia.
"Indonesia assures that the oil palm sustainability aspect meets the conditions set by Japan under the Feed in Tariff (FIT)m scheme," he said.
The two ministers also discussed Regional Comprehensive Economic Partnership (RCEP). Nishimura congratulated Airlangga on the approval of the ratification. RCEP is the largest trade block initiated by Indonesia while it was chair of ASEAN 2011.
In addition, he also asked about Japan's view on IPEF launched by US President Joe Biden and 14 other heads of state on May, 2, 2022
Nashimura said IPEF is very important for Indonesia as the largest economy in Southeast Asia to keep balance between profit and regulation.