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Govt seeks to renegotiate trade, investment deal with Japan

The government is focusing on expanding its market access and reviewing Japan’s Tariff Rate Quotas (TRQ) for Indonesia’s agricultural products.

Mardika Parama (The Jakarta Post)
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Mon, July 20, 2020

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T

he government is seeking to expand access to the Japanese market, reduce tariffs and liberalize the movement of workers in tourism through Indonesia-Japan Economic Partnership Agreement (IJEPA) renegotiations.

According to the Trade Ministry's bilateral negotiations director Ni Made Ayu Marthini, the government is focusing on expanding its market access and reviewing Japan’s Tariff Rate Quotas (TRQ) for Indonesia’s agricultural products.

“In regard to market access, some of our fishery products still have higher tariffs to enter the Japanese market, including canned products. We would also like to secure the fruit market in Japan, and Japan currently implements the TRQ for Indonesia’s [products],” she said during an online webinar held by SSEK Legal Consultant on Tuesday.

Greater market access for Indonesia’s products would boost trade between the two countries, Made said, as Japan is Indonesia’s third-largest export destination and second-largest import source.

The total value of trade between Indonesia and Japan reached US$31.56 billion in 2019, a slight decrease from $37.44 billion in 2018, according to Trade Ministry data. Indonesia also posted a trade surplus of around $320 million in 2019.

Under IJEPA, fresh and chilled fishery products from Indonesia, including salmon and trout, are excluded from tariff reduction commitments alongside canned tuna products. Meanwhile, other canned fishery products are subject to further negotiations, according to the IJEPA’s Annex 1.

“We want 0 percent tariff on [canned fishery] products because we think it will be a win-win situation. Japanese consumers will have the products and there are many Japanese investors who are investing in Indonesia to produce them for the Japanese market,” Made said.

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