Indonesian Political, Business & Finance News

RI, Japan focus on cooperation

| Source: JP

RI, Japan focus on cooperation

Zakki P. Hakim, The Jakarta Post, Jakarta

Japan and Indonesia are focusing their series of negotiations on
setting up an Economic Partnership Agreement (EPA) to strengthen
cooperation in trade, investment and intellectual property
rights, the Minister of Trade says.

Mari E. Pangestu said on Monday the two countries had agreed
in their first talks ending on Friday to form an EPA with five
"expert groups", which would negotiate sector agreements.

"Friday's talk marks the kick-off of the EPA negotiation,"
Mari said.

The Expert Group on Trade in Goods will negotiate issues of
market access, customs, rules of origin, competition and standard
and conformance.

The Expert Group on Trade in Services, Investment and
Government Procurement will explore mostly in areas of
regulations needed to enhance investment, while the Expert Group
on the Movement of Citizens will cover workers moving between the
two countries.

The group on intellectual property rights, meanwhile, is to
focus on information exchange and cooperation, while the Expert
Group on Cooperation, will explore efforts in areas of capacity
building for the Indonesian private sector in penetrating
Japanese and international markets through the improvement of
quality, standards and technical requirements.

Chief negotiator and U.S. Ambassador Soemadi DM Brotodiningrat
said Indonesia had proposed forming a sixth group focusing solely
on investment.

"But Japan has yet to show us its position (on forming a new
group)," Soemadi, a former ambassador to Japan, said.

Earlier, the ministry said that Indonesia needed to focus more
on capacity-building cooperation because lifting the tariff
barriers would not automatically lead to a wider market access
for local products, which would still face non-tariff barriers.

Indonesian goods might not be able to meet Japanese quality
standards and technical requirements or be unsuited to Japanese
tastes, the ministry warned.

The first round of talks came after President Susilo Bambang
Yudhoyono and Japanese Prime Minister Junichiro Koizumi signed an
agreement to launch EPA negotiations during Susilo's visit to
Tokyo on June 2.

In the meeting, Koizumi and Susilo agreed the two countries
would conclude the EPA talks "within a reasonable period of
time".

According to Soemadi, the two countries were yet settle on a
time frame for how long the negotiations would take place.

However, he said that Japan needed at least two years to
conclude FTA talks with Thailand, the Philippines and Malaysia.

Because Japan was experienced in FTA talks, Soemadi hoped that
EPA negotiations could be finished in less than two years.

The two delegations have agreed to hold negotiations at least
every two months after their October meeting in Tokyo.

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