T

he Japanese government has promised to consider Indonesia'€™s requests in the planned review of the two countries'€™ economic partnership agreement (EPA), which according to Indonesia is disproportionately beneficial to Japan.

The Japanese Embassy'€™s deputy chief of mission to Indonesia Yusuke Shindo said that since Indonesia was a long-term partner of Japan in trade and investment, it was important to maintain a balanced relationship in which both parties received equal benefits.

'€œIt'€™s good to have discussions to improve the partnership between Japan and Indonesia. If there'€™s any possibility we can enhance it, we will be open,'€ Shindo told The Jakarta Post on Thursday on the sidelines of a gathering of Japanese CEOs hosted by the Investment Coordinating Board (BKPM).

Implemented in 2008, the IJ-EPA is considered to have been less beneficial than was expected by the Indonesia side. Indonesia has requested a since review since 2013, but no plan was agreed on until recently.

On the trade front, Indonesia has yet to take full advantage of increased market access, for among other reasons a lack of product diversification, suggested research from the Centre for Strategic and International Studies (CSIS) in 2013.

Among the goods that have failed to penetrate the Japanese market despite tariff cuts are textiles, footwear, processed food, pulp and paper and fishery products, according to the research.

In terms of industrial capacity-building, an initiative under the Manufacturing Industry Development Center (MIDEC) provided by the IJ-EPA has also failed to boost the competitive edge of Indonesia'€™s manufacturing industry in a variety of sectors, such as metalworking and tooling techniques, according to industry officials.

The program was intended to increase the penetration of Indonesian manufactured goods into Japan and strengthen the structure of Indonesia'€™s manufacturing industry. Shindo further said that as Indonesia aimed to triple its exports by 2019, Japanese firms would play a key role, allowing the country at the same time to globalize its products.

'€œSo many Japanese companies are moving here and are based here. They want to export not only to Japan, but all over the world,'€ he said.

Direct investment from Japan is seeing a significant upward trend, rising from US$713 million in 2010 to $2.71 billion in 2014, according to statistics from BKPM.

It reached a peak of $4.71 billion in 2013 driven by a number of automobile firms seeking massive expansion in Southeast Asia'€™s largest economy.

In the most recent five-year period, Japanese investment employed 424,694 workers.

Trade Ministry director general for international trade cooperation Bachrul Chairi said that with the review, Indonesia aimed to re-structure its bilateral relations with Japan.

In terms of trade, it sought larger market access for its agriculture, fishery and forestry products, Bachrul revealed to The Jakarta Post recently. In industrial areas, he went on, Indonesia was keen to obtain Japan'€™s aid in increasing the standards of local products for exports not only to Japan, but also to other foreign destinations.

'€œIt'€™s obvious that we still have holes in our upstream and secondary industries. As a result, 75 percent of our imports are raw materials and intermediary inputs. We will ask for Japan'€™s aid.'€