In response to concerns over a potential Japanese economic slowdown, Indonesia intensifies efforts to finalize trade negotiations and broaden market access, aiming to mitigate the impact and sustain economic resilience.

Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso
Source: Coordinating Ministry for Economics

The Indonesian government, represented by Secretary of the Coordinating Ministry for Economic Affairs, Bapak Susiwijono Moegiarso, disclosed plans to advance various trade negotiations as a proactive measure to enhance the country’s access to global markets. This initiative comes amidst apprehensions regarding a potential economic downturn in Japan, which could potentially trigger a recession with reverberations in Indonesia. The announcement was made in a press statement issued from Pak Moegiarso’s office on 17 February 2024.

Pak Moegiarso highlighted the primary focus of the Export Increase Task Force on expanding market access through the completion of agreement negotiations, with special emphasis on key initiatives such as the Indonesia-European Union Comprehensive Economic Partnership Agreement (CEPA), Indonesia’s potential accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and Indonesia’s pursuit to become a member of the Organisation for Economic Co-operation and Development (OECD).

Furthermore, the task force outlined plans to target 12 new priority countries for Indonesia’s export destinations, including Saudi Arabia, the Netherlands, Brazil, and China, among others. The prioritized export commodities to these nations encompass a diverse range of products, including fish, processed coconut, coffee, spices, textiles, automotive, and electronics, among others.

Despite global economic uncertainties stemming from the potential Japanese recession, Moegiarso reiterated the resilience of the Indonesian economy, citing robust growth figures buoyed by sustained domestic demand and controlled inflation. Notably, Japan stands as one of Indonesia’s key export destinations, with significant transactions in commodities such as coal, electronic components, nickel, and automotive.

According to data provided by the ministry, Japan ranked as the fourth-largest destination for Indonesian exports in 2023, with trade transactions totalling US$18.8 billion. Additionally, Japan maintained its prominence as the fourth-largest investor in Indonesia, injecting US$4.63 billion into the country’s economy in the same period.

Source: Antara News