Japaness Leader Visit to Indonesia
JAPANESS Prime Minister Shinzo Abe came to Indonesia. He accompanied by his wife Akie Abe and several Japanese businessmen. Abe planed stay in Indonesia for three days to follow up bilateral cooperation with Indonesian government. Abe arrived in Istana Merdeka yesterday on monday (20/8) . He welcomed directly by President Susilo Bambang Yudhoyono and the First Lady Ani Yudhoyono.
Coordinating Minister for Economy Boediono, Minister of Trade Mari Elka Pangestu, Minister of Finance Sri Mulyani, Minister of Industry Fahmi Idris, Minister of Energy and mining Purnomo Yusgiantoro, Minister of State Secretarist Hatta Rajasa, Minister of Foreign Hassan Wirajuda, Minister for Environment Rachmat Witoelar, The Head of Investment body Muhammad Lutfi and several other officials joined welcomed Abe visited.
After military ceremony, Yudhoyono and Abe spread out close meeting in Istana Merdeka. Around 11.15 a clock, two leaders talked to press conference in Istana Negara no far from Istana Merdeka.
Abe came for first time since five years. It is very significant because coinciding with the birthday 40 years formations of ASEAN, and important to develop economic relations Japan and Indonesia.
Japaness Leader visited to Indonesia bring important meaning for this country. At least, two countries tried more implementation several bilateral cooperation agreement. Yudhoyono said, Prime Minister Abe come to Indonesia to make increase cooperation and partnership two nations.
Not only to sign Economic Partnership Agreement (EPA) between Indonesia-Japan or only to appointment several projects produced by cooperation Indonesia-Japan.
However, Indonesia and Japan also had a purpose to more cooperation increased of two countries in various fields.
Cooperation agreement for all fields was implementation from initiative and strong determination between Indonesia-Japan Government after Yudhoyono carried out visit state to Japan last year. Presiden came to Japan for signed strategic partnership peaceful and prosperous future.
In economic sector, two leaders signed EPA. According to Yudhoyono, Japan is important partner in economic cooperation. Since 1967 until 2007, Japan as biggest investor for Indonesia. Japan also biggest trade partner for Indonesia.For five last years, volume of Indonesian trade to Japan was growth reached 14.4 percent.
Yudhoyono talked about Indonesian economics achievement continued to increase. Economics grew six percent since crisis struck. Domestic Indonesian market also increasingly strengthened. Indonesia also increasingly productive manpower.
With EPA, President sure Indonesian efforts increased climate of domestic investment, Indonesia-Japan cooperation will develop wider, good in investment field, trade and other cooperation.
In EPA discussions, Yudhoyono and Abe also carried out constructive discussions about obstacle non tariff as one of problems Indonesian businessman who exported Indonesia product to Japan market.
President Yudhoyono understood if non tariff obstacle for Indonesian businessman efforts was concerning standard and quality Indonesian product. President suggested Indonesia product must be know marketed Japan condition.
Step will be carried out to confirm Indonesian product, service did not experience the obstacle in Japan, Yudhoyono and Abe agreed more consistent to come back in EPA framework stipulation, especially for efforts capacity building in order to ascertains quality standard from Indonesian product entered Japanese market. President stressed that Indonesian product must be able to fill condition for the market in Japan.
Indonesia welcomed Japanese cooperation to give training and socialisation to help Indonesian businessman to develop agricultural products, fisheries, manufacture or management for certain commodity. Therefore, Indonesian products hoped could fill condition for Japanese market.
According to Abe, non tariff obstacle was arranged in EPA framework and really open. However, he gaze still needed framework and system valid in two countries understanding.
“In EPA framework have association between Japanese and Indonesia businessman or leader exchange business efforts will be increased, as well as understood each other situation and situation as well as available system in two cracks,” clear Abe.
Abe considered, EPA signing have been real realisation of cooperation between two countries so that economic agreement partnership could increase economic relations.
Not only in economic field, but in the field on the whole. In this meeting, he said, President Yudhoyono sent strong determination and carry out in economic reform, improvement of climate of investment, as well as democratisation efforts in Indonesia.
“Japan will continue to give help for these efforts.”
Minister of Trade Mari Elka Pangestu explained, EPA Indonesia-Japan aim to increase trade and investment for Indonesia and Japan. Plattform the agreement of economic cooperation framed comprehensively have three pillars in EPA.
Firstly, liberalisation of trade and investment is eliminating or reducing trade barrier and investment (import duty, improvement and assurance of law).
Secondly, facilitated for trade and investment namely cooperation of standard, customs and excise, port and trade service, efforts together improved climate of investment and increased the investor’s Japanese belief.
Thirdly, capacity building, namely mechanism cooperation can increase competitiveness Indonesia product.
For Indonesia, Japan also as biggest investment foreign and ODA giving bilateral biggest.
Japan considered Indonesia as biggest country in ASEAN and in a manner geopolitics most important, as well as consideration to push energy and other raw material.
Japan was aim of main Indonesian export. Access increase market, absorbed approximately 20 percent for Indonesian export (non oil and gas 15 percent).
The Indonesian export value to Japan in 2006 reached 21.7 billion US dollar. Indonesia as one important suppliers for Japan. Growth Japanese import value in Indonesia in 2005-2006 reached 15.1 percent.
The supreme Indonesian product in Japanese Market on 2006, such as agriculture, fisheries and the plantation around 919 million US dollar, Footwear around 118 million US dollar, rubber around 971 million US dollar, nickel and other product 1.30 billion US dollar, almunium and other product 449 million US dollar, funiture 240 US dollar. Totally of trade Indonesia value reached 5.5 billion US dollar.
Japanese investment in Indonesia 1998-2006, such as electricity machine and electronics 2.83 billion US dollar, vehicle and transport equipment 1.64 billion US dollar, mineral Industry and non metallic 862 million US dollar, chemistry and medicine 780 million US dollar, trade and repairs 661 million US dollar.
EPA Indonesia-Japan will increase industrial product Indonesian competitiveness because Japan give capacity building for Indonesia.
By MIDEC, Japan gave training for supporting industry and sector of Indonesia promoter. But, Indonesia gave free facilities for Japanese product import duty.
For Indonesia, EPA with Japan guided to increase access for Indonesia product in Japan market, access for service market, investment from Japan in Indonesia, competitiveness, community’s Indonesian purchasing power. EPA also can make Indonesia product can be competitor with another contry in Japanese market that has EPA with Japan like Singapore, Thailand, Malaysia, the Philippines, Brunei and Mexico.
EPA also one of form commitment consistency trade agreement in WTO permanently to priority context of round Doha development negotiations, the regional ASEAN trade, ASEAN+1 (China, Korea, Japan, India, Austrialia and New Zaeland).
The outline of EPA Indonesia-Japan agreement that abolition or decline import tariff fast-track and stage, the exception for strategic sector/sensitive, security action (emergency and safeguard measures) to prevent possibility impact negative on domestic industry.
Japan concestion are more 90 percent of tariff post (99 percent of Indonesian export value to Japan) entered EPA, around 80 percent of tariff post would = 0 at the time of EPA taking effect, and about 10 percent of tariff post in stages would to do = 0 (3-10 years since EPA taking effect). The number of Japanese tariff post 9,275
Indonesia concestion are approximately 93 percent of the tariff post (92 percent of the Japanese export value to Indonesia) entered EPA, around 58 percent of the tariff post will be = 0 at time of EPA taking effect and approximately 35 percent of tariff post in stages will be = 0 (3-10 years since EPA taking effect). Around 7 percent of all over tariff post (834) did not enter EPA (exclusion list). The number of Indonesian tariff post 11.163.
In energy sector, Indonesia-Japan agreed to develop oil, gas, coal, electricity power, and biofuel.
Two countrys hoped could achieve target achieving requirement for domestic energy, including provisions of Liquid Natural Gas (the LNG) for domestic requirement.
President Yudhoyono invited Japanese businessman in order to increase cooperation with Indonesian investor to develop source energy in Indonesia. Realisation energy cooperation was proven by appointment channel gas pipe to connect North Sumatra and West Java, generator of electricity of coal power in Tarahan Lampung, PLTU Cilegon, and the LNG project and gas in Donggi-Senora.
In security field, Indonesia-Japan agreed to increase maritime security especially in Malacca Strait as important route for Indonesia, Japan and the other country.
Disturbance crime from year to year descend significantly in Malacca Strait. “That condition must continue to be increased through by cooperation sea patrol Indonesia-Malaysia-Singapore,” said Yudhoyono.
Indonesia welcomed Japanese help will give three fast patrol boats to pacify Malacca on December. For Indonesia, Malacca security absolute to continue carried out to anticipate transnational crime, and terrorism threat. Security of strait length reached 500 mile absolute carried out because related global interests. Malacca Strait is traffic route 80 percent oil for world and 30 percent of trade commodity for people in the world.
Indonesia also supported Japan wanted to play in East Asian region. Indonesia also supported resolution of problems in Korean. Indonesia expected six party talk could be successful, and nuclear Korean rumours could be completed in peace, Indonesia also hope Japanese resident who was kidnapped could be released immediately.
Indonesia also supported Japan to help African nation by program African development. Indonesia ready to cooperate because one of country as motors developing Asia-Africa cooperation.
Cooperation in regional and international field, Abe said, Japan and Indonesia agreed to more concrete and make effort harder in solving regional problem, especially happened in East Asia, North Korea and reform The United Nations Security Council.
Yudhoyono and Abe also discussed about problem environment connected with the cooperation in forestry. According to President, environment problem is very important and needed global commitment including Indonesia-Japan to rescue the earth.
“I welcomed and gave appreciation to the concept cool earth and safety that inisitive by Prime Minister of Japan with aim and clear target, and whoever for the international conference climate change that will be carried out in Bali on December.”
President expected this concept can become constructive cooperation framework.
Yudhoyono and Abe also witnessed contracts and business cooperation signing between Indonesia and Japan in the Forum opening for Indonesian and Japan Business in Ballroom, Hotel Hyatt, Jakarta. Five contracts in energy field was signed.
The Chairman KADIN Indonesia MS Hidayat delivered thank for Japanese government seriousness in establishing business cooperation with Indonesia.
Presence of delegation of Japanese businessmen famous joined visit of Prime Minister Shinzo Abe showed Japanese commitment, to reinforce economic cooperation, especially around business community Indonesia and Japan.
Hidayat also welcomed signed by EPA in Istana Negara that marked commencement of new era in economic cooperation Indonesia and Japan.
The Indonesian businessman was ready to discuss about trade and investment opportunity supervised by framework of EPA. Indonesia businessmen also has business proposal that will be introduced to Japan businessmen.
In Indonesia, about 1.200 Japanese companies and employed about 200 thousand Indonesian residents. Opportunity for Japan to develop economic cooperation was unfolded increasingly wide. Indonesia currently experiences and undertakes fast transformation both in a manner politics, economics, and social.
Yudhoyono said, Indonesia optimist economic can be more prospect and be better.
Indonesia will be more incessant increased export and investment, built infrastructure, pushed industry, cultivated agriculture, reinforced competitiveness, increased UKM, encouraged exploration and production oil and natural gas, created field of work, and combatted poverty.
To Japanese investor, Yudhoyono expected become part of Indonesian transformation.
”We really hope, Japanese investment could increase in future especially ratification new investment regulation last April as guaranteed same treatment for investors, assurance of law and bigger transparency, process of briefer permission, and various good incentives in fiscal field, land, and immigration,” said President.
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