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Indonesia and Japan began their fourth round of official
negotiations for a bilateral trade and economic cooperation agreement
Monday, and hope to reach a basic accord by the end of the year at the
latest.
In the five days of talks being held in Tokyo, the respective
delegations will be led by Japanese Deputy Foreign Affairs Minister
Mitoji Yabunaka and the former Indonesian ambassador to the U.S. and
Japan, Soemadi DM Brotodiningrat.
In the opening address of the meeting, Yabunaka said he hoped the two
sides would push ahead with the negotiations so that a deal could be
clinched as soon as possible.
"Time is very important so as to demonstrate to the world that this
partnership between us is working well," he was quoted as saying by the
Kyodo News agency.
Meanwhile, Soemadi stressed that the substance of the agreement was
just as important, and called on the two sides not to sacrifice content
by trying to seal an agreement too hastily.
Indonesia and Japan agreed last July to begin working toward the
signing of an Economic Partnership Agreement (EPA), a comprehensive
bilateral economic agreement that would include not only the
liberalization of trade in goods and services, but also cooperation in
the fields of investment, competition policies and the movement of
people.
Monday's round of talks follows those in February, October and July,
after the two countries wrapped up a preliminary joint study for the
EPA, agreeing to hold official negotiations every two months, with a
deal being expected within the next two years.
During the preliminary talks, Indonesia requested Japan's assistance in
developing its local support industries, and agricultural and fisheries
sectors, and to grant employment access to its unskilled workers.
Japan, meanwhile, requested that Indonesia overhaul its investment
rules, eliminate tariffs on vehicles and auto parts, and ensure more
stability in energy exports to Japan.
Japan is Indonesia's largest trading partner, with two-way trade
amounting to US$24.9 billion last year, with an $11.1 billion surplus
in Indonesia's favor. Japan is also among Indonesia's largest
investors, with approved investment plans amounting to $1.68 billion in
value last year.
Indonesia is in a race with other countries in the region to clinch
free trade agreements (FTA) with Japan. Singapore already signed one in
2002, while Malaysia, Thailand and the Philippines are expected to do
likewise this year.
China and Korea are also engaged in FTA talks with the ASEAN states.
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