RI, Japan to boost industrial cooperation ahead of 60th diplomatic anniversary

Jakarta (ANTARA News) - Indonesia and Japan have agreed to boost industrial cooperation ahead of the 60th anniversary of diplomatic relations in 2018, through boost in investment and market expansion.

"We will mark the 60th anniversary of our diplomatic relations in 2018 as a momentum to build our economy together in order to create prosperity for the people of each country," RIs Minister of Industry, Airlangga Hartarto, stated in a press statement here on Monday, prior to his work visit to Japan.

During a six-day visit to Japan, from Oct 16 to 21, Hartarto will meet some industrial companies, namely board of directors from Fujitrans Corporation, Mitsubishi Motors, JFE Steel, and Sango Corporation.

Hartarto will also attend Indonesia Investment and Business Forum (IIBF) 2017 and meet some delegation from Japan Indonesia Economic Committee (JIEC), Japan External Trade Organization (JETRO), Nagoya Chamber of Commerce and Industry (NCCI), and government officials from Aichi Prefecture and Ogawa Prefecture.

"Hopefully, we will have more business-to-business collaborations that will increase competitiveness and complement each other," he noted.

Besides large manufactures investment, the Industrial Ministry has been pushing for cooperation in developing technology, innovation, human resources, and small-medium enterprises (SMEs) in Indonesia.

"Indonesia has a large domestic market in ASEAN region, and the government has been issuing some economic packages to ease the investors in doing business," noted Hartarto.

Hence, Hartarto was optimistic that the investment will continue to flow into industrial sector, particularly from Japan, which has reached US$5.4 billion in 2016, or an increase of 86 percent, from $2.9 billion in previous year.

Up till now, more than 1,750 Japanese companies are registered in Indonesia in various fields, such as manufacture, infrastructure, and service, with major investment in automotive, steels, machinery, and electronic goods.

Hartarto believed that the bullish Japanese investment in Indonesia is encouraged by deregulation in infrastructure and industrial building, as well as tax allowance and tax holiday that included fiscal incentives.

In a bid to invite more Japanese investors to Indonesia, the Ministry of Industry had held some promotion events from Sept 13 to 15, 2017, in Tokyo, Osaka, and Yokkaichi City in Mie Prefecture.

Source: ANTARA News

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