SBY to visit Japan to pave way for agreement, discuss N. Korea

The Jakarta Post ,  Jakarta   |  Wed, 11/01/2006 11:23 AM

Abdul Khalik, The Jakarta Post, Jakarta

President Susilo Bambang Yudhoyono is scheduled to visit Japan from Nov. 26 to 29 to talk about enhancing bilateral ties, the Japanese Embassy in Jakarta says.

Yudhoyono and wife Kristiani would meet Japanese Prime Minister Shinzo Abe along with Emperor Akihito and Empress Michiko.

""The government of Japan sincerely welcomes the visit of the President and Mrs. Kristiani, which will further strengthen the friendly relations between Japan and Indonesia,"" the embassy said in a statement.

Trade Ministry director-general for international trade Herry Soetanto said the President's visit was expected to clarify negotiations on the much-awaited Indonesia-Japan Economic Partnership Agreement (EPA).

""We are still negotiating several components of the EPA. Both leaders will certainly discuss the issue, and we hope that the talks will speed up the signing of the agreement,"" Herry told the Post.

After the latest round of talks in Tokyo earlier this month, Japan said the two countries had made progress in areas, including goods and services and investment rules, but further negotiations were still needed in the energy sector.

Indonesia and Japan agreed in July last year to begin working toward the signing of an EPA, a comprehensive bilateral economic agreement that would include the liberalization of trade in goods and services and cooperation in the fields of investment, public policy and labor.

Japan is Indonesia's largest trading partner. Two-way trade amounted to US$24.9 billion last year, with an $11.1 billion surplus in Indonesia's favor. Japan is also among one of the largest investors in Indonesia, with an approved investment plan amounting to $1.68 billion last year.

The EPA is wider in scope than a free trade agreement, involving technical assistance along with economic and trade issues.

Indonesia has signed less trade agreements with Japan and other advanced nations than other Southeast Asian countries.

Observers believe Yudhoyono should use Indonesia's increasingly close ties with China as a bargaining position in talks with Abe.

A member of the House of Representatives Commission XI on finances, Dradjad Wibowo, said the timing of the announcement of Yudhoyono's visit to Japan during the China-ASEAN dialog clearly indicated Japan was interested in making deals with ASEAN countries.

""I think China's rise and its closeness to ASEAN, especially Indonesia, has affected Japan. Yudhoyono should use this as leverage to gain full economic benefits, such as debt renegotiations (with Japan),"" he told the Post.

Foreign Ministry director-general for Asia, the Pacific and Africa Primo Alui Joelianto said the two leaders would also talk about several regional issues, including the nuclear drama in the Korean peninsula.

""The North Korean nuclear issue is very important to both countries as it could destabilize the region,"" he told the Post.

Copyright © 2008 The Jakarta Post - PT Bina Media Tenggara. All Rights Reserved.