Government Urged to Maximise President's Visit to Strengthen Trade with Japan
President Prabowo Subianto’s visit to Japan is seen as needing to be maximised to strengthen trade cooperation that directly impacts the public. Japan is regarded as a strategic partner that has played a significant role in supporting Indonesia’s economy for decades.
Indef economist Didik J. Rachbini stated that Indonesia-Japan trade relations are complementary. This pattern is considered more beneficial as both countries can grow together without pressuring each other.
“Trade with Japan is mutually filling. Indonesia supplies energy, raw materials, and agricultural products. In return, Japan supplies technology, machinery, and industrial investment,” Didik said in his statement on Monday (30/3/2026).
According to him, this cooperation model provides real added value. In addition to strengthening foreign exchange reserves, it also encourages Indonesia to enter the global supply chain. The impact is felt in job creation and strengthening the domestic manufacturing sector.
Didik reminded that this trade pattern differs from Indonesia’s trade relations with several other countries, especially China. He assessed that trade with China tends to be substitutional or mutually replacing, thus triggering direct competition on similar products.
“If the products are the same, we end up competing. The strong one will win. Indonesia is often at a disadvantaged position because it loses on price,” he said.
He added that this condition also pressures the domestic industry. Even early deindustrialisation symptoms are starting to appear due to the influx of cheaper imported products. Not a few small and medium enterprises end up only as distributors of imported goods.
Therefore, Didik emphasised the importance of follow-up strategies after the President’s visit. The government is urged not to stop at diplomatic ceremonies but to immediately follow up with concrete programmes that strengthen economic cooperation with Japan.
“The economic team must prepare real steps. Investment promotion, industrial strengthening, to technology transfer must be the focus,” he said.
He assessed that although Japan’s economic growth is relatively low, its economic scale is still very large and influential globally. This becomes an opportunity for Indonesia to deepen higher-quality partnerships.
“Do not let this visit be just symbolic. There must be results felt by the public, especially in the form of jobs and strengthening the domestic industry,” he said.