Back then Japan was the largest lender of Indonesia under the Dutch-led Inter-Governmental Group on Indonesia (IGGI) and then the World Bank-led Consultative Group for Indonesia in 1992. Japan was also Indonesia’s most important trading partner.

Since Soeharto’s fall, even until today, bilateral economic cooperation – minus the ODA—such as investment and trade remains the most important agenda for the two countries. Japan remains one of the largest investors in Indonesia, although its domination is gradually being taken over by China.

But the visit of Prime Minister Fumio Kishida to Jakarta will take place in a starkly different landscape. The increasing assertiveness of China in the region, the unpredictable behavior of North Korean leader Kim Jong-un in threatening the world with its nuclear weapons, and the Russian invasion of Ukraine are among the accelerating factors for Japan to act more straightforwardly, including in the area of defense. 

Indonesia and the 10-member ASEAN will see a more transparent standpoint and concrete actions from Japan in dealing with the current international issues, including Russia’s invasion and China’s claim over nearly the entire South China Sea. Beijing also claims it has fishing rights in the waters of the Natuna Islands in Riau Islands province, based solely on its unilaterally claimed “nine-dash line”.

Public opinion surveys consistently show that people in ASEAN have great faith in Japan as an honest partner. Japan delivers what it promises. China has now become the most important trading partner of the region, if not the world, but Japan’s role in high-tech investment remains crucial.

PM Kishida will be in Jakarta from Friday to Saturday without much fanfare. Jakarta has only made a very brief explanation about Kishida’s working visit, which hopefully is not because government officials are too busy preparing for Idul Fitri, which most likely falls on Monday.