Indonesia-Japan economic partnership agreement goes into effect tomorrow

More than 1,000 Japanese companies are operating in Indonesia absorbing 400,000 workers.

"The most important aspect of the EPA is partnership. Under the partnership scheme and serious business activities, we are convinced that what has already been agreed on in EPA will be able to run smoothly and to achieve significant success," he said.

In the meantime, Industry Minister Fahmi Idris said the EPA is basically a liberalization of trade, and if that`s the case, it will surely benefit Japan more.

According to him, Japan might get the upperhand in the deal with that country`s high-tech products still in high demand in Indonesia, and set to enjoy even lower duties. By contrast, Indonesia`s main agricultural and timber products would continue to face non-tariff and market-access barriers in Japan in the form of strict quality standards. He therefore urged Japan to invest more in Indonesia`s manufacturing industry within the framework of the EPA.

"Let`s just say this is to balance things up against the loses we might have suffered under this agreement," he said, adding that there was a need for a joint statement to be issued so as to ensure its fairness.

Since July last year, Indonesia and Japan have been working toward the signing of the EPA, a comprehensive bilateral economic agreement that will include not only liberalization of trade in goods and services, but also cooperation in the fields of investment, competition policies and the movement of people.

The two Asian countries held their sixth round of EPA talks before, aiming to overcome the remaining differences.

With regard to the EPA, Trade Minister Mari Pangestu previously said ...