TEMPO.CO, Jakarta - The Indonesian and Japanese governments agreed to review the Indonesia-Japan Economic Partnership Agreement (IJ-EPA) to derive mutual benefits, according to a press release from the Ministry of Foreign Affairs on Tuesday, as reported by Antara News.
The review of IJ-EPA was agreed during a bilateral meeting between President Joko Widodo and Prime Minster Shinzoe Abe.
The review aims to balance the bilateral trade between both countries.
Japan is Indonesias third-largest trading partner, with trade value reaching US$40.2 billion in 2014.
The bilateral meeting also approved discussions on the renegotiation of the Double Taxation Avoidance Agreement.
In terms of investment, Japan is the second-largest investor in Indonesia, with its investment valued at US$2.7 billion in 2014.
In the context of investment, President Joko Widodo delivered a development plan in Indonesia, particularly in relation to infrastructure.
The president stressed that there are several opportunities for Japanese investors to invest in various sectors in Indonesia, such as power plants, construction of 24 ports, manufacture and repair of highways, construction of 15 new airports and renovation of the old airports, the construction of Mass Rapid Transport (MRT) in metropolitan cities and major cities in Indonesia, and the development of special economic zones outside Java island.
The president and prime minister welcomed the plan of cooperation in infrastructure development of MRT in Jakarta as well as the Java-Sumatra train line and transmission interconnection projects.
The leaders also launched the Indonesia-Japan Export and Investment Promotion Initiative in an effort to boost trade and promotion cooperation.
With regard to maritime cooperation, Indonesia and Japan have agreed to form a maritime cooperation forum, in particular to discuss maritime security, maritime infrastructure (marine highway program), and to improve the field work and the fishing industry.
These are in line with the Indonesian governments efforts to realize the vision of maritime axis.