News Details

Indonesia Expands Trade Market Access to Anticipate Japan's Recession

Japan

Gold & Jewelry

19-02-2024

The Indonesian government plans to complete various trade negotiations to expand its market's access to global trade to anticipate the impact of the Japanese economic slowdown that may cause a recession in the country. "The Export Increase Task Force is focusing on expanding market access by encouraging the completion of agreement negotiations, especially the Indonesia-EU CEPA, the opportunity for Indonesia to enter the CPTPP trade block, and Indonesia's accession to become a member of the OECD," Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, noted in a press statement from his office on Saturday, Feb. 17. Moreover, the task force will increase exports to 12 new priority countries for Indonesia's export destinations, namely Saudi Arabia, the Netherlands, Brazil, Chile, China, the Philippines, India, Kenya, South Korea, Mexico, the United Arab Emirates, and Vietnam, he remarked. Moegiarso said that the export commodities prioritized for these countries are fish and processed fish, swallow's nest, processed coconut and coconut, processed coffee and spices, vegetable ingredients and margarine, cocoa, processed food, and animal feed.

 

In addition, cement, chemical products, rubber and rubber products, leather and leather products, pulp and paper, textiles and textile products and footwear, precious metals and jewelry, machinery, electronics, automotive, furniture, and toys are included in the export priority products. Amid the global economic disruption due to the threat of a Japanese recession, he remarked that the Indonesian economy is still resilient with solid growth achievements. "Our solid growth is supported by domestic demand that continues to grow and is maintained by controlled inflation," he remarked. According to Moegiarso, Japan is one of the main export destinations for Indonesia, with the main export commodities being coal, electronic components, nickel, and automotive. The ministry noted that Japan is the fourth-largest destination country for Indonesian exports throughout 2023, with total transactions reaching US$18.8 billion. Japan also occupies the fourth position as the main country of origin for investment in Indonesia, with an investment value of US$4.63 billion in 2023.