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The Japan-Indonesia Economic Partnership: Agreement Between Equals?

Published online by Cambridge University Press:  07 May 2025

David Adam Stott
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After ratification by the Japanese parliament (Diet) one month earlier, the Japan-Indonesia Economic Partnership Agreement (JIEPA) came into force on July 1, 2008. Indonesia's first such bilateral trade agreement appropriately takes effect during the 50th anniversary of bilateral diplomatic relations. For Japan it follows similar agreements with some of its other production centres and resource suppliers in Southeast Asia.

Type
Research Article
Information
Asia-Pacific Journal , Volume 6 , Issue 7 , July 2008 , e12
Creative Commons
Creative Common License - CCCreative Common License - BYCreative Common License - NCCreative Common License - ND
This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial-No Derivatives licence (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is unaltered and is properly cited. The written permission of Cambridge University Press must be obtained for commercial re-use or in order to create a derivative work.
Copyright
Copyright © The Authors 2008

References

Notes

[1] However, it was not the largest recipient of grant aid. Sugeng Bahagijo, ‘Japanese ODA in Indonesia - a high price for poverty, ‘Reality of Aid Reports 2002.

[2] Hal Hill, ‘The Indonesian Economy, ‘Cambridge University Press, 2000.

[3] T. Kong and A. Ramayandi, ‘Survey of Recent Developments, ‘Bulletin of Indonesian Economic Studies, Vol. 44, No. 1 (April 2008), pp 7-32.

[4] Antara, ‘Implementation of RI-Japan EPA to begin in November, ‘August 3, 2007.

[5] ibid

[6] ibid

[7] Bob Widyahartono, ‘IJEPA's targets: implementation is the key, ‘Antara, April 18.

[8] ibid

[9] ibid. Specifically, the surrounds of Jakarta, Bandung, Semarang, Surabaya, Makassar, Medan, Palembang and Medan at first, followed later by Pontianak, Banjarmasin, Balikpapan, Manado, Kupang, Ambon, Sorong, and Biak.

[10] Kyodo, ‘Indonesian nurses look forward to work in Japan, ‘May 11, 2008.

[11] Yomiuri Shimbun, ‘Recruiting of Indonesian nurses falls short, ‘July 3, 2008.

[12] Yomiuri Shimbun, ‘Recruiting of Indonesian nurses falls short, ‘July 3, 2008.

[13] Kyodo, ‘Indonesian nurses look forward to work in Japan, ‘May 11, 2008.

[14] Asanobu Sato and Atsuko Kobayashi, ‘Indonesian care workers face many obstacles, ‘Yomiuri Shimbun, May 22, 2008.

[15] ibid

[16] ibid

[17] Arudou Debito, “Japan's Future as an International, Multicultural Society: From Migrants to Immigrants,” Japan Focus, October 28, 2007.

[18] Sato and Kobayashi, 2008.

[19] Takeyuki Tsuda, ‘Local Citizenship and Foreign Workers in Japan, ‘Japan Focus, May, 26, 2008.

[20] ibid

[21] Bill Guerin, ‘Indonesia's natural gas dilemma, ‘Asia Times, July 22, 2003.

[22] Kong and Ramayandi, 2008.

[23] Antara, ‘Mitsubishi to build LNG refinery in C Sulawesi, ‘June 8, 2008.

[24] Jakarta Post, ‘Medco aims to halt oil output decline, ‘May 6, 2008.

[25] Ika Krismantari, ‘Japan to buy more LNG from Indonesia, ‘Jakarta Post, August 24, 2007.

[26] Reuters, ‘Japan's Inpex due to unveil plans on Timor Sea gas, ‘May 14, 2008.

[27] Xinhua, ‘Indonesia Says Inpex Proposes $19.6B LNG Plant, ‘June 9, 2008.

[28] BPMIGAS, ‘Inpex Plans Four-well Masela Program, ‘Rigzone.com, May 23, 2007.

[29] Xinhua, 2008.

[30] ibid

[31] Antara, ‘Japanese to spend US$6 bln on Indonesian oil refinery, LNG projects, ‘March 28, 2008.

[32] Reuters, ‘Japan firms may quit Indonesia over power crisis, ‘July 5, 2008.

[33] Jakarta Post, ‘Bigger Power Crisis Looms, ‘July 3, 2008.

[34] Philip White, ‘Indonesian Anti-Nuclear Activists Visit Japan/Korea,' Citizens' Nuclear Information Center, July 2007

[35] Andi Haswidi, ‘Indonesia likely to be the loser in Japan agreement, ‘Jakarta Post, 18 August, 2007

[36] Antara, ‘Japan to cut import duties on 80 pct tariff posts for Indonesia, ‘June 27, 2008.

[37] Andi Haswidi, ‘EPA offers opportunities and challenges, ‘Jakarta Post, August 20, 2007.

[38] Andi Haswidi, ‘Indonesia likely to be the loser in Japan agreement, ‘Jakarta Post, 18 August, 2007.

[39] ibid

[40] Andi Haswidi, ‘EPA offers opportunities and challenges, ‘Jakarta Post, August 20, 2007.

[41] Akira Amari and Yasuo Hayashi, ‘The Significance of JIEPA for Indonesia's Development, ‘Jakarta Post, July 1, 2008.

[42] ibid

[43] Jakarta Post, ‘RI's textile exports to U.S., Japan drop, ‘June 4, 2008.

[44] See Ha-Joon Chang, ‘Kicking Away the Ladder,' 2002, Anthem Press and the same author's ‘Bad Samaritans: Rich Nations, Poor Policies and the Threat to the Developing World,' 2007, Random House

[45] First expounded in the 1930s by Japanese economist Akamatsu Kaname, the ‘Flying Geese’ pattern of economic development in East Asia was a popular analogy in the 1990s and refers to the fact that Japan tended to produce and export new and often innovative products before its Asian neighbours. As these goods become more widespread and profit margins shrank, lower labor costs prompted a production shift to the ‘four tigers’ (Hong Kong, Korea, Singapore, and Taiwan), while Japanese production moved to newer technologies. This process then continued shifting from the four tigers to Malaysia and Thailand, then Indonesia, and finally, China. China's position in this formation has been changing ever since.