Indonesian trade negotiators are pushing their Japanese counterparts to allow the country's workers more access to Japan's labor market.

"We are ready to provide skilled workers, especially nurses and caregivers, to the Japanese service sector. However, Japan must open up its market," Indonesia's chief negotiator for the Indonesia-Japan economic partnership agreement (EPA), Soemadi DM Brotodiningrat, said Wednesday.

Indonesia asked Japan to recognize certified workers in the medical, tourist, hospitality, and food and beverage sectors in the third round of EPA negotiations held earlier this week.

With continued high unemployment here and around two million new workers entering the labor market every year, working abroad has long been an option for many Indonesians.

As of end of 2005, there were 2.1 million Indonesian workers employed in Hong Kong, Malaysia, Singapore, South Korea and the Middle East, mostly in unskilled jobs. Annually, these migrant workers send home some US$2.9 billion in remittances.

Japan, with its developing service sector, could be a potential market for Indonesian workers. However, finding employment in the country is not easy.

There is the obvious language barrier, and Japan only accepts foreign workers for jobs its workers are unable to fill.

Trade is central to the EPA, with Indonesia requesting tariff eliminations or reductions on agricultural, forestry and fishery products, plastic bags, glass products, textiles and footwear; commodities all subject to significant duties here.

Meanwhile, Japan wants Indonesia to eliminate tariffs on car imports and automotive parts, steel, textiles and high-tech goods.

"The list is still open for additional requests, but ethically we cannot withdraw our offers," Soemadi said.

In the area of cooperation, Indonesia is asking for Japanese technical support and capacity-building for the environment and small and medium enterprises.

Separately, non-governmental organization the Institute for Global Justice suggested the government put more emphasis on the development of SMEs.

"The economic partnership should benefit all levels in the private sector. Not only the upper ones," researcher Alex Chandra said.

He saw the EPA partnership and the free trade agreements signed with China and Korea as potentially the start of a larger East Asia economic cooperation that could benefit Indonesia.

This is the first time Indonesia and Japan have entered into EPA negotiations.

Japan is currently Indonesia's largest single trading partner, with the country receiving 14.5 percent of all Indonesian exports, and Japanese goods making up 17.11 percent of all Indonesian imports in 2005.

The next EPA negotiations in April will take place in Tokyo.

RI-Japan EPA Talks

Indonesia's interest:
1. Tariff elimination on :
- organic chemicals
- plastic bags
- glass products
- textiles
- footwear
2. Technical assistance in environmental issues and the development of SMEs
3. Cooperation between both customs
4. Acceptance of skilled and professional workers in tourism, hospitality, nursing and sea-crew services

Japan's interest:
1. Tariff elimination on :
- auto and auto-parts
- steel
- textiles
- electrical
2. Elimination of export subsidies, duties and restrictions in agriculture, forestry and fishery
3. More predictable custom procedures
4. Liberalization of manufacturing, information and
communications, transportation, tourism, financial and legal services

Source: Indonesia-Japan EPA joint study group report.