Indonesia and Japan have agreed to enhance cooperation in innovation and sustainable economic development through the Public-Private Track 1.5 Initiative forum.
Coordinating Minister for Economic Affairs Airlangga Hartarto agreed to the cooperation proposal during a meeting with Japanese Minister of Economy, Trade, and Industry Hagiuda Koichi in Jakarta.
“Indonesia is always ready to cooperate with the Japanese government to maximize the great potential of cooperation between the two countries,” said Hartarto in an official statement issued here on Tuesday.
Under the Public-Private Track 1.5: Japan Indonesia Co-Creation Partnership for Innovative and Sustainable Economic Society, the two countries will enhance cooperation in regional and global supply chains, infrastructure development, digital economy, human resource development, and sustainable industry, which is a priority for Indonesia’s development, the minister informed.
The bilateral forum is also expected to promote the development of the digital economy and Indonesia’s micro, small and medium enterprises (MSMEs), which have grown to become the main supporting sector of the national economy, with a contribution of more than 60 percent to gross domestic product (GDP), Hartarto said.
MSMEs also absorbed more than 90 percent of the workforce in 2020, he noted.
He further noted that the digital economy sector has also made an important contribution to Indonesia, he said. The value of Indonesian e-commerce is projected to continue to increase to US$32 billion by 2025, with an annual growth rate of 54 percent.
During their meeting, Hartarto and Koichi also discussed opportunities for cooperation during Indonesia’s 2022 G20 Presidency, which is themed “Recover Together, Recover Stronger”.
Hartarto appealed to the Japanese Government to cooperate and support Indonesia’s initiatives to make the agenda of the Indonesian G20 Presidency a success.
They also discussed access to trade between the two countries, as well as increasing cooperation in the region, especially in ASEAN and Indo-Pacific countries’ forums.
The total trade between Indonesia and Japan in January–November 2021 reached US$28.5 billion, an increase of 31 percent compared to US$21.7 billion in the same period of 2020, Hartarto said.
Meanwhile, Japanese investment in Indonesia during the period from January to September 2021 reached US$1.7 billion through 6,794 projects, making Japan the fourth largest investor in Indonesia, he noted.
During the meeting, Hartarto also congratulated Koichi on his appointment as Japan’s Minister of Economy, Trade, and Industry. Hartarto said he is optimistic that the bilateral relationship between Indonesia and Japan will be stronger in the future, especially in infrastructure development where Indonesia and Japan have been involved in many collaborations.
“Some of Indonesia’s main infrastructure has been built in collaboration with Japan, including the construction of the Jakarta MRT (Mass Rapid Transit) and Patimban Port. I believe that the new dialogue will be able to further strengthen and expand bilateral cooperation in this sector,” Hartarto remarked.
Source: Antara News