RI, Japan turn to bilateral ties amid global crisis

Mustaqim Adamrah and Desy Nurhayati, The Jakarta Post, Jakarta    

Indonesia and Japan are enhancing their bilateral ties with a nine-day Indonesia-Japan Expo held in Jakarta to mark 50 years of bilateral partnership. 

In a speech delivered at the opening ceremony Saturday, President Susilo Bambang Yudhoyono said the two countries' close relationship could be an answer to challenges resulting from global economic turmoil.

 A TOUCH OF TOKYO: Three women clad in the traditional Japanese kimono chat while walking near the venue of Celebrating the 50th Anniversary of Indonesia-Japan Friendship at Kemayoran, Central Jakarta, on Saturday. (JP/P.J. Leo)

"Our bilateral relationship has been getting stronger since its establishment in 1958," he said. 

"This is an asset to us in dealing with global challenges resulting from the energy crisis, food crisis and climate change crisis, among others." 

Among those attending the ceremony were Trade Minister Mari Elka Pangestu, Transportation Minister Jusman Syafii Djamal, Energy and Mineral Resources Minister Purnomo Yusgiantoro, and Culture and Tourism Minister Jero Wacik. 

Former Japanese prime minister Yasuo Fukuda, who is also the Indonesia-Japan Friendship Association chairman, attended the ceremony. 

Bachrul Chairi, head of the Trade Ministry's National Export Promotion Agency (BPEN), which is participating at the expo, said the government would not set any transaction targets at the expo. 

"We only want to show the people how vast the Indonesia-Japan relationship that has been going on for 50 years is," he told The Jakarta Post. 

"With many huge Japanese firms operating here and the high value of Indonesia's exports in Japan, it is affirmed that the two countries depend on each other." 

He said Indonesia imported semifinished products, such as steel for auto components, from Japan, while Japan imported oil, gas, iron ores, nickel, tin, coffee, tuna and shrimp from Indonesia. 

According to the Central Statistics Agency (BPS), two-way trade reached US$30.16 billion in 2007, with Indonesia's non-oil-and-gas exports to Japan standing at $13.09 billion. 

The BPS recorded $18.68 billion in bilateral trade in the first eight months of this year, a 28.5 percent increase from the same period last year. 

Citing the bilateral relationship, Indonesian Chamber of Commerce and Industry chairman M. S. Hidayat said the economic ties had improved, as evident with the August signing of the Indonesia-Japan Economic Partnership Agreement (EPA). 

"Japan has proven its commitment through JBIC (Japan Bank for International Cooperation), which has been financing numerous Japanese projects in Indonesia," he told the Post. 

A Japanese government organization, Japan External Trade Organization (JETRO), also helped Indonesian small and medium enterprises (SMEs) develop their businesses, he said. 

"What the Indonesian government needs to do now is lobby the Japanese government so our SMEs can penetrate the Japanese high-end market equipped with tough requirements."