Indonesia and Japan have reached an agreement on amendments to their existing trade pact, aiming to lower trade barriers and enhance economic cooperation between the two nations.
Indonesia and Japan reached an agreement on Thursday to amend their economic pact, aiming to reduce or eliminate trade barriers and enhance bilateral trade.
Japan will further lower import tariffs on 112 Indonesian
products, including fishery products, fruits, food, and beverages, as stated by
Indonesia’s trade ministry in an official statement.
In return, Indonesia will enhance market access for 25
Japanese products, including stainless steel and automotive, under the revised
Indonesia-Japan Economic Partnership Agreement (IJEPA), which is anticipated to
be ratified in the upcoming year.
The statement projects a significant increase in Indonesia’s
exports to Japan, with a surge from $20.8 billion in 2023 to $35.9 billion by
2028 as a result of the revision.
The updated agreement will also include an extension of the
employment term for Indonesian nurses and caregivers in Japan, along with the
potential liberalization of worker movement in other professions.