Indonesia and Japan agreed on Thursday to amend an economic agreement aimed at reducing or eliminating trade barriers, with Indonesia anticipating a boost in bilateral trade as a result.
Japan will lower import tariffs on 112 Indonesian items, including fishery products, fruit, food, and beverages, as stated by Indonesia’s trade ministry. In return, Indonesia will enhance market access for 25 Japanese products, such as stainless steel and automotive goods, under the revised Indonesia-Japan Economic Partnership Agreement (IJEPA), which is expected to be ratified next year.
Indonesia’s exports to Japan are projected to increase to $35.9 billion by 2028, up from $20.8 billion in 2023, according to the statement. The new agreement will also extend the employment terms for Indonesian nurses and caregivers in Japan and may include the liberalization of worker movements in other professions.
