COORDINATING MINISTRY FOR ECONOMIC AFFAIRS
REPUBLIC OF INDONESIA

PRESS RELEASE
HM.4.6/9/SET.M.EKON.3/1/2022

Initiative Public Private Track 1.5: Reinforcing Bilateral Cooperation between Indonesia and Japan for Innovation and Sustainable Economy

Jakarta, January 11th, 2022

The Covid-19 pandemic has been transforming many countries in the world to be more open and synergistic in order to recover together. Likewise, the bilateral relations between Indonesia and Japan that have been running so far are also increasingly being encouraged to be better established.

In an effort to improve these relations, the Coordinating Minister for Economic Affairs Airlangga Hartarto received a visit from the Japanese Minister of Economy, Trade and Industry Koichi Hagiuda in Jakarta, Monday (11/01).

The meeting discussed opportunities for cooperation in Indonesia's G20 Presidency carrying the theme "Recover Together, Recover Stronger". Coordinating Minister Airlangga invited the Japanese Government to cooperate and support Indonesia's initiatives to make the agenda set out in Indonesia's G20 Presidency this year's success.

Furthermore, the meeting also discussed access to trade between both countries, as well as increasing cooperation in the region, especially in ASEAN forums and Indo-Pacific countries. For information, the total trade between Indonesia and Japan in January to November 2021 was worth US$28.5 billion, which means 31% higher than the same period in 2020 which was US$21.7 billion. In terms of investment, from January to September 2021, Japan's investment in Indonesia amounted to US$1.7 billion in 6,794 projects which was ranked fourth among other Indonesian investors.

Coordinating Minister Airlangga, who was also accompanied by the Minister of Trade Muhammad Lutfi on the occasion, welcomed the proposed new cooperation initiative with Japan, namely Public Private Track 1.5: Japan Indonesia Co-Creation Partnership for Innovative and Sustainable Economic Society. Through this forum, the two countries will increase cooperation in regional and global supply chains, infrastructure development, digital economy, human resource development, and sustainable industry which are Indonesia's development priorities.

"Indonesia is always ready to cooperate with the Japanese government to maximize the great potential of cooperation between the two countries," said Coordinating Minister Airlangga.

The bilateral forum is also expected to be a forum to promote the development of Micro, Small, and Medium Enterprises (MSMEs) and the digital economy. Indonesian MSMEs have grown to become the main supporting sector of the economy with a contribution of more than 60% of GDP and absorb more than 90% of the workforce in 2020. In addition, another sectors that is also very important for Indonesia is the digital economy. Indonesia's e-commerce value is projected to continue to increase to US$32 billion in 2025 with an annual growth rate of 54%.

On the occasion, Coordinating Minister Airlangga congratulated the inauguration of Minister Hagiuda as Japan's Minister of Economy, Trade and Industry. Coordinating Minister Airlangga is optimistic that in the future the bilateral relationship between Indonesia and Japan will be even stronger, especially in infrastructure development where Indonesia and Japan have strong cooperation experiences.

"Some of Indonesia's main infrastructure have been built in collaboration with Japan, including the Jakarta MRT and Patimban Port. I believe that the new dialogue will strengthen and expand bilateral cooperation further in this sector," Coordinating Minister Airlangga concluded. (dep7/ltg/alr/iqb/fsr)

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Bureau of Communications, Information Services, and Meetings
Coordinating Ministry for Economic Affairs of the Republic of Indonesia
Haryo Limanseto

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