CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Japan And Indonesia Sign Economic Partnership Agreement

Japan And Indonesia Sign Economic Partnership Agreement

by Mary Swire, Tax-News.com, Hong Kong

22 August 2007


Indonesian and Japan have concluded an Economic Partnership Agreement (EPA), which is expected to remove trade taxes on more than 90% of goods and services traded between the two countries, and facilitate faster expansion of bilateral cooperation in various areas.

The agreement, the sixth between Japan and a South East Asian nation, was signed on Monday by Indonesian President Susilo Bambang Yudhoyono and his Japanese counterpart Prime Minister Shinzo Abe at the State Palace in Jakarta. The EPA will cut taxes and tariffs on agricultural goods, with the exception of rice. In all, about 90% of Japanese goods being exported to Indonesia would become tariff-free in terms of value, up from 34%, and approximately 93% of Indonesian goods bound for Japan would become so, up from 71%.

Importantly for Japan, the EPA will also widen Japan's access to Indonesia's market for energy and raw materials. Japan is currently the world's biggest importer of liquefied natural gas (LNG).

Yudhoyono said that, through the EPA, Indonesia would continue to improve its investment climate and convince Japan of its potential for strong cooperation in the fields of investment, energy and trade.

According to Yudhoyono, the agremeent is intended to increase energy production in Indonesia while maintaining cooperation on LNG with Japan.

"We are inviting Japanese investors to develop Indonesia`s energy sources," Yudhoyono stated.

Abe added that the agreement would enable Japan to "assist Indonesia in carrying out its determination to reform its economy and improve its investment climate and democracy".

Indonesia is Japan's 11th largest trading partner, while Japan is the leading partner for Indonesia. Over the past five years, growth in bilateral trade between the two nations has increased in volume by 14.4%.


To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »