economy

Ministry Of Industry Boosts Indonesia-Japan Industry Partnership According To JETRO Study

The close collaboration between Indonesia and Japan for over 60 years has brought numerous benefits to both countries, especially in the fields of economy and industry.

One of the key contributors to the economic cooperation between Indonesia and Japan is The Japan External Trade Organization (JETRO).

"In Indonesia, JETRO Jakarta has played a crucial role in enhancing the economic relationship between Indonesia and Japan through a series of activities aimed at strengthening the ties between businesses from both countries, including trade and investment," said Minister of Industry AgusGumiwangKartasasmita during a meeting with JETRO Chairman Mr. Ishiguro Norihiko in Tokyo, on Thursday (20/6) local time.

The Minister appreciates JETRO's efforts in boosting trade and investment between Japan and the rest of the world, including Indonesia. According to him, one of the beneficial activities carried out by JETRO is the 2023 Business Conditions Survey, which aims to understand the business conditions of Japanese-affiliated companies located in Asia and Oceania, including those in the manufacturing sector.

The survey results provide insights to the Indonesian Government regarding the business preferences of Japanese-affiliated companies operating in Indonesia, including factors considered advantageous for doing business here. It also sheds light on the companies' optimism and future plans, including increasing investments.

"The research findings from JETRO can also be utilized as one of the considerations in formulating policies to enhance competitiveness and maintain a favorable business climate in order to attract investments, whether through business expansion or new investments," added the Minister.

Furthermore, the Minister of Industry hopes that the Ministry of Industry and JETRO can strengthen their cooperation, especially in utilizing the survey results and other forms of cooperation. The Minister also requests more analysis and input from JETRO to accelerate Japanese investment in Indonesia.

Specifically, the Minister of Industry stated that Japan's investment position in Indonesia is currently below their investment in Thailand. "We ask JETRO to help explore the steps that the Indonesian government needs to take to increase investment," said the Minister of Industry.

He also conveyed Indonesia's target in the development of the automotive industry, particularly electric vehicles. The Minister of Industry revealed that the ownership ratio of cars in Indonesia is targeted to increase from the current 99 units per 1,000 people to 150/1,000. Therefore, the Minister of Industry offers Japan to take part in this plan.

Cooperation in the automotive industry can also include the development of the electric vehicle ecosystem, which also encompasses the electric vehicle battery industry. The Minister of Industry emphasized that the competition in electric vehicle technology is growing rapidly, so he hopes that JETRO can provide support in its development.

Next, in the context of cooperation in small and medium-sized industries, decarbonization, and green economy, the Minister of Industry also expressed hope that JETRO can facilitate partnerships between Indonesian companies and Japanese companies within the framework of the green economy.

Mr. Ishiguro stated that JETRO can play a role in connecting Indonesian companies with Japanese companies to establish cooperation in the targeted fields, such as those mentioned by the Minister of Industry. He added that there are numerous opportunities for cooperation between industries in Indonesia and those from Japan.

Tag: Indonesia Jakarta Japan JETRO