Indonesia-Japan Business Forum: Efforts to Escape the Middle-Income Trap
The Indonesian Chamber of Commerce and Industry (Kadin) views the Indonesia-Japan business forum as a crucial turning point. This momentum is considered capable of propelling Indonesia out of the middle-income trap through accelerated investment and strengthened innovation.
Kadin Indonesia Chairman Anindya Bakrie stated that the forum brings together business actors from both countries. The meeting is more than ceremonial; it serves as a space for consolidation to strengthen strategic collaboration in priority sectors—from green and renewable energy, manufacturing, digital economy, to food and energy resilience.
The forum itself was held at The Imperial Hotel, Tokyo, Japan, on Monday (30/3). Its timing coincides with the official visit of Indonesian President Prabowo Subianto to the Land of the Rising Sun, adding diplomatic and economic weight to the event.
Anindya emphasised that Indonesia’s long-standing relations with Japan cannot be maintained in old patterns. A leap is needed. Bilateral relations must be transformed to a more progressive level to address the complexities of global challenges while accelerating national economic growth.
“Indonesia must escape the middle-income trap. One way is through investment and innovation so that growth can be higher than before,” said Anin, his familiar nickname.
He also highlighted the increasingly turbulent global dynamics. The business world, he said, is demanded to be adaptive. Heating geopolitics, protracted conflicts, and global supply chain disruptions are variables that cannot be ignored.
“We understand and are sensitive that now is the time to move forward boldly rather than war in the midst. But we believe there is still a way. So this is also something that can be discussed between the two countries to develop even better. The main point is how we can survive in this business,” said Anin.
A similar view was expressed by the Chairman of the Japan Bilateral Committee of Kadin Indonesia, Muhammad Lutfi. He stressed the urgency of strengthening investment as the main foundation for future partnerships—not just transactions, but value-added collaborations.
According to Lutfi, the Indonesia-Japan partnership must move towards concrete value co-creation. Cross-sector collaborations—industry, energy, to global supply chains—are believed to drive growth, spark innovation, and strengthen Indonesia’s competitiveness on the international stage.
In the forum, several strategic memoranda of understanding (MoU) were also announced. The value of Indonesia-Japan trade is recorded at around 23.6 billion US dollars. The spectrum of cooperation is broad. Energy, industry, technology, to the financial sector become fields of synergy.
Some agreements include trade and investment collaboration between the Japan Chamber of Commerce and Industry (JCCI) and Kadin Indonesia. In addition, there is the development of the Abadi Gas Field in the Masela Block by INPEX and PT Pertamina (Persero), as well as initiatives for building a semiconductor ecosystem, geothermal energy, and the establishment of an aviation leasing fund.
This forum is part of a grand orchestration to deepen the strategic partnership between Indonesia and Japan. These efforts are strengthened through the utilisation of the revised Indonesia-Japan Economic Partnership Agreement (IJEPA) and the momentum of World Expo Osaka 2025—a global stage expected to open more concrete, sustainable, and high-value investment opportunities.