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Japan and Indonesia Set to Eliminate Trade Barriers and Boost Economic Partnerships

Japan and Indonesia Set to Eliminate Trade Barriers and Boost Economic Partnerships

Trade Barriers Suspension Between Japan and Indonesia

An announcement by Indonesia's Foreign Minister declares that Indonesia and Japan have established an agreement to eliminate several trade barriers. This agreement was reached upon concluding negotiations for supplementary protocols to refine their ongoing bilateral economic commitments.

Enhanced Market Opportunities for Indonesian Products

The Japanese administration will permit enhanced market penetration for Indonesian products. This permission includes the abolition of tariffs on processed fishery commodities as well as a forthcoming enhancement of collaboration in the banking industry, as articulated by the Indonesian Foreign Minister, Retno Marsudi.

Economic Partnership Agreement Implementation

Both nations aim for the revised Indonesia-Japan Economic Partnership Agreement (IJEPA) to commence operations by the opening quarter of 2024. However, the proposal still demands official signing and ratification by the legislative bodies of the two nations, following legal assurances, Marsudi added.

Bilateral Discussions and Future Collaborations

Marsudi’s announcement succeeded a two-party discussion between Indonesia's President Joko Widodo and the Japanese Prime Minister Fumio Kishida. This discussion occurred during a Tokyo convention recognizing half a century of Japan's affiliation with the Association of Southeast Asian Nations (ASEAN).

Removed Tariffs and Evolving Industries

Prior to these developments, Indonesia's trade ministry expressed that Jakarta had requested the removal of tariffs on its canned tuna exports during the talks preceding those which furthered the IJEPA, initially put in place in 2007. Put popularly, President Jokowi also stressed on the significance of the understanding shared by Jakarta and Tokyo on critical minerals. The reason being, Indonesia's goal to establish a prominent position in the global supply chain for EV (electric vehicle) batteries.

Japan Assisting the Indonesian Coastguard

Besides, Japan has donated a patrol ship worth 9 billion yen ($63 million) to the Indonesian coastguard. The contribution aims at amplifying Indonesia's maritime capabilities, Marsudi noted.

Addressing the Gaza Conflict

Furthermore, the Indonesian president expressed his support for a permanent ceasefire in the Gaza conflict and sustainable humanitarian aid, during his conversation with Kishida.

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