The Second Japan-Indonesia Ministerial Economic Dialogue and The Third Steering Committee Meeting of Metropolitan Priority Area for Investment and Industry in JABODETABEK Area (MPA) (Overview)

In the afternoon of Tuesday, October 9, the Second Japan-Indonesia Ministerial Economic Dialogue for approximately 1 hour and 20 minutes and the Third Steering Committee Meeting of Metropolitan Priority Area for Investment and Industry in JABODETABEK Area (MPA) for approximately 50 minutes were held at Iikura Guest House. An overview of each meeting is as follows (Participants on the Indonesian side included H.E. Ir. M. Hatta Rajasa, Coordinating Minister for Economic Affairs of the Republic of Indonesia (co-chair); H.E. Mr. Mohamad Hidayat, Minister of Industry; H.E. Dr. Mari Elka Pangestu, Minister of Tourism and Creative Economy; and H.E. Mr. Muhammad Lutfi, Ambassador of the Republic of Indonesia to Japan. Participants on the Japanese side included Mr. Koichiro Gemba, Minister for Foreign Affairs (co-chair); Mr. Yukio Edano, Minister of Economy, Trade and Industry; Mr. Takashi Nagayasu, Senior Vice-Minister of Land, Infrastructure, Transport and Tourism; and Mr. Yoshinori Katori, Ambassador of Japan to the Republic of Indonesia.):

Before the meetings, Minister for Foreign Affairs Gemba and Coordinating Minister for Economic Affairs Hatta held a meeting for approximately 15 minutes. The meeting was held in a friendly atmosphere and both sides confirmed the meaning and substance of the meetings which were subsequently held (Participants on the Indonesian side included H.E. Mr. Mohamad Hidayat, Minister of Industry; H.E. Ms. Mari Elka Pangestu, Minister of Tourism and Creative Economy; and H.E. Mr. Muhammad Lutfi, Ambassador of the Republic of Indonesia to Japan. Participants on the Japanese side included Mr. Yoshinori Katori, Ambassador of Japan to the Republic of Indonesia.).

1. Second Japan-Indonesia Ministerial Economic Dialogue

(1) General issues

A. Both sides discussed cooperation in the fields of infrastructure development in Indonesia, the Japan-Indonesia Economic Partnership Agreement (JIEPA), resources and energy, climate change, improvement of the investment environment in Indonesia, shipbuilding, creative industry and so on, and confirmed to further strengthen mutually beneficial economic relations.

B. Moreover, both sides shared recognition that the role the strategic partnership between the two countries plays for the stability and prosperity of the region continues to grow and they confirmed to work together toward the integration of the regional economy, taking into consideration the fact that Indonesia will chair the Asia-Pacific Economic Cooperation (APEC) meetings in 2013.

(2) Specific issues

A. Both sides shared views on the importance of the Japan-Indonesia EPA for further development of mutually beneficial economic relations and also shared views on improving the system for accepting Indonesian candidates of nurses and care-workers through cooperation by both sides.

B. In terms of the Joint Crediting Mechanism of climate change, both sides shared the view that it is an effective mechanism for promoting the East Asia Low-Carbon Partnership and also shared views on accelerating discussion between both governments for the early development of the bilateral document by the end of this year to start operation of the mechanism from April next year.

2. Third Steering Committee Meeting of Metropolitan Priority Area for Investment and Industry in JABODETABEK Area (MPA)

(1) MPA Master Plan

A. Both sides endorsed the Master Plan for Metropolitan Priority Area for Investment and Industry in JABODETABEK Area (MPA) (click here for Attachment 2 [PDF]), which identifies 45 Priority Projects aiming to be completed by 2020 including 18 Fast Track Projects to be commenced by the end of 2013 and shared the view to promote collaborative efforts in establishing infrastructure in Indonesia.

B. The Indonesian side explained that of the estimated project budget totaling approximately 410 trillion rupiah or approximately 3.4 trillion yen , 55% is expected to be financed by the private sector, while the remaining 45% is expected to be financed by public sector including the Government of Indonesia. In response to this, the Japanese side, mindful of the estimate by Master Plan that Japan’s Official Development Assistance (ODA) and other foreign assistance of approximately 125 trillion Rupiah or 1.0 trillion yen is expected as a part of the necessary fund over about next 10 years, expressed its intention to consider positively the cooperation upon the request for individual projects from the Government of Indonesia.

C. Furthermore, both sides shared the view that since the MPA Master Plan is a symbol of the mutually beneficial economic relations between Japan and Indonesia, it is important that the significant achievement gained by developing the MPA Master Plan should bring benefits to the both countries in the form of concrete projects through the partnership among the public and private sectors of the two countries.

D. Both sides also shared the view to identify five projects as MPA Flagship Projects, including Construction of Jakarta Mass Rapid Transit (MRT) and Development of Chimalaya New International Port.

E. In terms of the implementation of the MPA Master Plan, both sides shared the view to continue to holdthe Steering Committee and Technical Committee, and at the same time, to establish an MPA Implementation Team to ensure the smooth and early implementation of each project.

F. The Indonesian side expressed its intention to make every possible effort towards the realization of the MPA Master Plan as the plan is an integral part of the Master Plan of Economic Development Acceleration and Expansion of Indonesia (MP3EI) promoted by the Government of Indonesia.

(2) High Level Consultation for Investment Promotion

From the viewpoint of promoting the better investment environment in Indonesia, both sides shared the view to aim at improving investment-related systems in Indonesia through discussion between the public and private sectors of the two countries by continuing consultation in the Second Round of the High Level Consultation for Investment Promotion.

Both sides shared the view that a strong partnership among Japan, the U.S., and the ROK is important given the current situation in the East Asian region.

(3) Joint Press Release

After the Steering Committee Meeting, a joint press conference was held by the both co-chairs and Joint Press Release was released by the both co-chairs (click here for Attachment 1 [PDF]).

[Reference]
Attachment 1 [PDF]: Joint Press Release by the Co-Chairs of the MPA Steering Committee (English)
Attachment 2 [PDF]: Overview of the MPA Master Plan (including progress report [PDF], project list [PDF]) (English)
Attachment 3 [PDF]: Report to the MPA Steering Committee by the MPA High Level Consultation for Investment Promotion (Summary) (English)