Indonesia and Japan have agreed to extend the Indonesia-Japan Economic Partnership Agreement (IJEPA), enhancing the bilateral framework that has been under discussion since 2019. This extension aims to facilitate duty-free export of fresh and processed Indonesian products to Japan. The agreement, initially established in 2008, is undergoing updates to incorporate new cooperation areas, pending ratification in Indonesia's DPR as per the Presidential Regulation.
According to Trade Minister Zulkifli Hasan, this renewal marks a historic development for Indonesia, potentially eliminating up to 17 percent import duties on Indonesian fruits like pineapples and bananas in Japan. Furthermore, Japan intends to enhance market access for 112 tariff lines previously restricted, while Indonesia will open access for 25 tariff lines to Japan. Hasan expressed optimism that this agreement will bolster Indonesia's export value to Japan by 60 percent by 2028, with an annual export growth projection of 11.6 percent.
This growth is anticipated to elevate Indonesia's export value to Japan to 36 billion US dollars by 2028. Additionally, the updated IJEPA includes a chapter on e-commerce to support trade through electronic systems.
Source: voi.id