Indonesia and Japan Business relationships to strengthen at the sight of a economic partnership agreement

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Indonesia believes that Japanese investment in Indonesia, particularly the portfolio one, still has potential to increase.

“Japanese portfolio investment in Indonesia still has potential to increase, as the value is very small at present,” Mirza Adityaswara, the senior deputy governor of Bank Indonesia, stated here, Saturday, in response to the press` question regarding his meetings with Japanese investors and analysts in Tokyo and Osaka.

Indonesia needs to maintain ties with Japanese investors and to furnish latest information on Indonesia`s economy continuously, he emphasized.

Hence, Adityaswara said he had held meetings with Japanese investors and analysts in Tokyo and Osaka.

Based on data of the Finance Ministry, the value of portfolio investment in the form of shares and bonds in rupiah as per December 2018, reached US$163.56 billion, including $61.68 billion of foreign ownership.

The ownership of Japanese investors was recorded at only $2.07 billion. Their ownership of Indonesian bonds in yen is also small.

Adityaswara has called on every relevant stakeholder to help intensify ties with Japanese investors in order to attract more investment, including direct investment.

Investors can notice Indonesia`s commitment in implementing development, if there are sound coordination and synergy among relevant stakeholders in the country, he added.

Suahasil Nazara, head of the Fiscal Policy Agency of the Finance Ministry, remarked that Indonesia was optimistic of maintaining and attracting more investment from Japan by offering information update to Japanese investors.

Indonesian Ambassador to Japan Arifin Tasrif stated that the value of Japanese trade and investment in Indonesia would increase if the two countries sign an economic partnership agreement.

He forecast that the agreement would be signed in June this year, prior to the G20 Summit in Japan.

Indonesia enjoyed a trade surplus of some $2 billion in its bilateral trade with Japan. Such a condition is no problem for Japan, he remarked.

Indonesia-Japan business ties are strong, in fact, Japan has long been a major source for foreign direct investment in Indonesia, influencing a wide range of sectors, from mining and basic industries to automotive and public transportation.

“Japan has been critical to Indonesia’s modern development. Today, as Indonesia continues to be a go-to-market for textile, automotive, chemical and technology manufacturing, and more, Indonesia continues to be an attractive, high-potential business opportunity

Indonesia’s ambassador to Japan, Arifin Tasrif, said the government is committed to assist in strengthening bilateral economic relations between the two countries.




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