Sign up | Log in



Home  >>   Daily News  >>   Indonesia News  >>Economy  >> RI mulls setting up trading house to boost exports to Japan
NEW UPDATES Asean Affairs 3 December 2014  

RI mulls setting up trading house to boost exports to Japan

Indonesia is considering establishing a trading house to help boost its exports to Japan, an Indonesian ambassador says.

Indonesian Ambassador to Japan Yusron Ihza Mahendra said on Monday that following Japan’s success in selling its products in overseas markets through a trading house, Indonesia may require a similar body to promote its exports to penetrate the Japanese market.

“The President said recently that ambassadors should also be salesmen [for the country] and I believe trade should be carried out both ways. So it’s not only us requesting Japan to come here, but also strongly marketing our products to Japan,” Yusron said, referring to President Joko “Jokowi” Widodo.

Indonesia and Japan have implemented an economic partnership agreement (IJ-EPA), which has helped cut the tariffs of traded products since 2008.

However, Indonesia’s exports to Japan have been outpaced by imports, with exports only increasing by 9.53 percent to US$27.09 billion from 2009 to 2013, while imports expanded by 17.81 percent to $19.28 billion, according to the Trade Ministry.

In terms of industrial goods, the situation is even worse on the Indonesian side, as exports rose by only 3.5 percent to $11.11 billion in 2013 from 2009, while imports climbed by 8.1 percent to $19 billion over the period, causing a significant deficit of $7.88 billion.

Indonesia has repeatedly raised its concerns on this issue, requesting to review the implemented trade pact since the past year to allow it to enjoy more balanced trade, but up to present, there has been no follow up.

Foreign direct investment (FDI) from Japan into Indonesia has expanded significantly, with an average 30 percent growth recorded in the past five years.

Realized investment last year nearly doubled from the 2012 figure, largely driven by an expansion in the automotive sector, settling at $4.71 billion, according to data from the Investment Coordinating Board (BKPM).

The investment, however, slowed this year amid the global economic downturn, settling at $2.04 billion in the January-September this year.

Yusron added that the government was not trying to court more sizeable investment from Japanese firms to Indonesia in line with its priority sectors, including the maritime industry and power generation.

“We’re trying to attract Japanese investors to Indonesia, but of course we must also improve our domestic business climate so that when they come here, they can realize their investment smoothly,” he said.

Meanwhile, Japanese engineering giant IHI Corporation expressed its interest in taking part in a power generation project planned by the Indonesian government and it also planned to expand its business in Indonesia.

IHI vice president for global marketing headquarters Hironobu Shikama said his firm was looking into engineering, procurement and construction (EPC) work in power plant projects in Indonesia.

The Indonesian government has plans to build electricity generation projects to produce up to 35,000 megawatts in the coming years.

Through its local subsidiary, PT Cilegon Fabricators, IHI at present makes boilers that are exported to several destinations, including Australia, Malaysia, Thailand, Japan, Chile and the US. It has yet to supply its products to the Indonesian market.

“We hope we can get some EPC projects in Indonesia and at the same time supply our boilers there. With that, we may then increase our investment here for a capacity upgrade,” Shikama told The Jakarta Post on the sidelines of the seminar.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                            December 3, 2014 Subsribe Now !
• ASEAN, Switzerland to Pursue Closer Partnership and Ties Subcribe: Asean Affairs Global Magazine
• RI mulls setting up trading house to boost exports to Japan
• Myanmar tourism to earn US$900 million in 2014
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• ADB set to loan $800M over the next five years
• $230m ADB loan to aid push for economic reforms 
Asean Analysis                    November 28, 2014

• Asean Analysis November 28, 2014
Jokowi Spells Out Vision For Indonesia’s “Global Maritime Nexus”
Advertise Your Brand

Asean Stock Watch    December  2,  2014
• Asean Stock Watch-December 2 , 2014
The Biweekly Update
• The Biweekly Update  November 28, 2014

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand