JIEPA comes into force today

01 Jul '08

2 min read

The long standing discussion on Japan-Indonesia Economic Partnership Agreement (JIEPA) which was initiated in August last year, comes into effect today with the two countries celebrating their 50 years of diplomatic ties.

Japan took privilege in entering into a partnership with Indonesia especially since it was the first bilateral EPA of the latter. This partnership is likely to strengthen economic ties between the two countries by means of liberalization of trade and investment.

Apart from increased trade activities, the agreement will also give way to accelerated business partnership between enterprises from both the sides which in turn may lead to a wider range of high value-added exported goods to Japan.

Textile industry of Indonesia will also receive a competitive edge through tariff elimination under JIEPA, allowing the country to export greater volume of clothing and apparel goods to Japan.

Moreover, the agreement will also enhance free inflow of persons between the two countries and this really is a crucial aspect of the EPA because it will be for the first time that Japanese Government would support the entry of foreign workers. Additionally, this strategic partnership will also facilitate undertaking of a number of projects and activities that will help Indonesia face the present challenging situations.

Development of supporting industries in Indonesia, technological training of local workers, exchange of personnel, enhancement of SMEs and handicraft sector are the other crucial aspects of the EPA that would be taken up for implementation in the years to follow.

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