Chapter 2 Japan's Foreign Policy that Takes a Panoramic Perspective of the World Map 4 Southeast Asia (1) Indonesia Regarding domestic politics, incumbent President Joko, and Gerindra Party Leader Prabowo announced themselves as candidates in September 2018 for the presidential election in April 2019, and Indonesia has entered the full-blown “politics season” focusing on the presidential and general elections, including the start of election campaigns. The Joko administration has gained high trust from the people by implementing reforms of the social welfare system and education system, infrastructure development, and more. In relations with Japan, 2018 marked the 60th anniversary of the establishment of Japan-Indonesia diplomatic relations, and various exchanges and cooperation projects were actively implemented in both the public and private sectors in both countries. Among others, the 60th anniversary opening event and opening ceremony were held in Jakarta with attendance of Prime Minister's Special Envoy Nikai in January. In April, the Commemorative Symposium for the 60th Anniversary of Japan-Indonesia Diplomatic Relations was held in Tokyo with attendance of Foreign Minister Kono. In addition, experts from Japan and Indonesia compiled policy recommendations regarding future bilateral cooperation in “Project 204517,” which was implemented throughout the year. Furthermore, government high-level exchanges included holding three Foreign Ministers' Meetings with Foreign Minister Retno, such as on the occasion of Foreign Minister Kono's visit to Indonesia in June, and the Summit Meeting between Prime Minister Abe and President Joko during the ASEAN-related Summit Meetings (Singapore) in November. Through these meetings, the two countries, which welcomed the 60th anniversary of the establishment of their diplomatic relations, confirmed further strengthening of cooperation in fields such as politics and security, economics and infrastructure, maritime affairs, disaster prevention, people-to-people exchanges, and support for Islamic education, as well as cooperation on regional issues such as the South China Sea and North Korea. Japan-Indonesia Summit Meeting (November 15, Singapore; Photo: Cabinet Public Relations Office) 17 A project for proposing policies that will serve as guidelines for the future by having civilian experts from Japan and Indonesia conduct discussions from an independent standpoint on what cooperation both countries will advance going forward toward 2045, the 100th anniversary of Indonesia's independence. (2) Cambodia Cambodia is located in a strategic place of the Southern Economic Corridor and serves as a key country in strengthening connectivity in the Mekong region and narrowing the regional development gap in the ASEAN region. The country has been promoting a development policy with emphasis on the enhancement of governance, with the aim of entering the group of Upper Middle-Income Countries by 2030. Japan has been cooperating actively with Cambodia, including through the Cambodian peace process in the late 1980s and in its subsequent reconstruction and development process. In 2013, the relations between the two countries were elevated to a “Strategic Partnership.” In 2018, the 65th anniversary of the establishment of diplomatic relations, there were active reciprocal visits by officials, including Foreign Minister Kono's visit to Cambodia in April, Foreign Minister Prak Sokhonn's visit to Japan in September, and Prime Minister Hun Sen's visit to Japan to attend the Mekong-Japan Summit Meeting in October. In recent years, an expansion of the bilateral relations has been seen in a variety of areas such as an increase in the number of Japanese residents and Japanese companies in Cambodia, and Cambodian residents in Japan. Regarding domestic affairs, amidst the dissolution of the Cambodian National Rescue Party (CNRP), the largest opposition party, due to a violation of the law on Political Parties in November 2017, the National Assembly election was held without the participation of the CNRP group in July 2018, and the ruling Cambodian People's Party (CPP) won all 125 seats. At the Japan-Cambodia Foreign Ministers' Meeting held immediately after the election in August, Japan indicated that various points were regrettable in the election such as a large number of invalid votes, and called on Cambodia in various ways to continue on the path of democratic development. In addition, at the Summit Meeting in October, Prime Minister Abe requested Cambodia to undergo democratization and conveyed his intention to expand governance support including invitations to Japan to young, politics-oriented Cambodians. Japan-Cambodia Summit Meeting (October 8, Tokyo; Photo: Cabinet Public Relations Office) In the Khmer Rouge Tribunal which Japan has been supporting for many years, a new Trial Court Chamber judgment was issued against two former leaders of the Khmer Rouge regime, including a former head of state, in November for another sentence of life imprisonment. (3) Singapore In Singapore, the People's Action Party (PAP), led by Prime Minister Lee Hsien Loong, occupies an overwhelming majority of seats in the Parliament. However, with the Cabinet reshuffle in May 2018, there has been steady progress toward a change of generations, with the percentage of young cabinet members in their 40s, known as “the fourth generation,” occupying the majority for the first time. In relations with Japan, there were continued high-level exchanges in 2018. During his visit to Belgium to attend the Asia-Europe Meeting (ASEM) in October, Prime Minister Abe held a meeting with Prime Minister Lee Hsien Loong. He reaffirmed the importance of free trade, confirmed close cooperation aiming for the early entry into force of the Trans-Pacific Partnership (TPP) agreement and the early conclusion of the Regional Comprehensive Economic Partnership (RCEP), and confirmed continued cooperation for the situations in the South China Sea and North Korea. In addition, Prime Minister Abe visited Singapore to attend the ASEAN-related Summit Meetings in November, and held a Summit Meeting. Furthermore, Foreign Minister Kono and Foreign Minister Balakrishnan held Foreign Ministers' Meetings a total of four times in January, February, August, and December, and discussed issues including strengthening bilateral relations, promotion of free trade, and the regional situation. Japan-Singapore Summit Meeting (November 15, Singapore; Photo: Cabinet Public Relations Office) Furthermore, the two countries work together to provide technical assistance through the “Japan-Singapore Partnership Program for the 21st Century (JSPP21)” that was signed in 1997, targeting developing countries. In 2018, 20 years since the signing of the JSPP21, a revised Memorandum of Discussion (MOD) was signed that added strengthening connectivity and the rule of law to the project goals. Projects introducing Japanese culture at the Japan Creative Centre (JCC) in Singapore, a platform to better understand Japanese culture, and intellectual exchange between experts from both countries are also actively conducted. (4) Thailand Thailand is located in the center of the Mekong region and is geopolitically important. It also has many production bases of Japanese companies as a result of investment accumulated over the years, and it now serves as an essential part of global supply chains for the Japanese economy. Under the parliament and interim cabinet established by the military government, a process to restore democracy had been under way, and the Government of Thailand announced plans to hold an election for the House of Representatives on March 24, 2019 to restore democracy. Various levels of exchanges, including political and economic ones, have been continued between Japan and Thailand on the foundation of the close relationship between the imperial and royal families and the “Strategic Partnership” relations. Active exchanges were continued at various levels between the two countries in 2018 as well. In June, Foreign Minister Kono visited Thailand to pay a courtesy call on Prime Minister Prayut and hold a Japan-Thailand Foreign Ministers' Meeting. In July, the Fourth Meeting of the Japan-Thailand High Level Joint Commission was held, co-chaired by Deputy Prime Minister Somkid, who was visiting Japan, and Chief Cabinet Secretary Suga, and attended by economics-related ministers from both countries. In addition, Prime Minister Prayut made the first visit to Japan in three years as Thai Prime Minister in order to attend the 10th Mekong-Japan Summit Meeting in October. Prime Minister Prayut of Thailand visits Japan (October 8, Tokyo; Photo: Cabinet Public Relations Office) (5) Timor-Leste Timor-Leste, the first country which achieved independence in the 21st century, has realized peace and stability with the support of the international community and has been building the nation based on democracy. Stagnation in the political administration occurred in the country as the 7th Constitutional Government led by Prime Minister Alkatiri, which was inaugurated in September 2017, was the minority party in the National Parliament. To break this deadlock, President Lu-Olo decided to dissolve the National Parliament on January 26, 2018, and a National Parliament election was conducted on May 12. As a result, the Alliance of Change for Progress (AMP), composed of three opposition parties from the former National Parliament, acquired 34 out of 65 parliament seats which is the majority. On June 20, the 8th Constitutional Government was inaugurated with its new Prime Minister being former President Ruak, the central figure of the AMP. Regarding relations with Japan, a Japan-Timor-Leste Foreign Ministers' Meeting was held for the first time in five years between Foreign Minister Kono and Minister for Foreign Affairs and Cooperation Babo during the ASEAN-related Foreign Ministers' Meetings held in Singapore in August. In October, Foreign Minister Kono visited Timor-Leste. This was the first visit by a Japanese foreign minister in 18 years since the visit by Foreign Minister Yohei Kono in 2000 and the first visit since the Restoration of Independence of Timor-Leste in 2002. Taking this opportunity, Foreign Minister Kono held meetings with President Lu-Olo, Prime Minister Ruak, and Minister of State and Presidency of the Council of Ministers Pereira (Acting Minister of Foreign Affairs and Cooperation), and confirmed promotion and strengthening of bilateral cooperation in fields such as politics and security, economics and infrastructure, people-to-people exchanges and human resources training, and maritime affairs; trilateral cooperation with Indonesia; and regional cooperation. Japan-Timor-Leste Foreign Ministers' Meeting (October 12, Dili, Timore-Leste) (6) The Philippines President Duterte of the Philippines, who assumed office in June 2016, has been backed by a high approval rating and a robust economy, and has continued to demonstrate strong leadership. Although the martial law in the Mindanao region has been maintained since the outbreak of the Marawi crisis in May 2017, the Philippines government has been making progress toward the reconstruction of Marawi with the help of the international community including Japan. The Mindanao peace process has witnessed milestone achievements such as the enactment of the Organic Law for the Bangsamoro Autonomous Region in Muslim Mindanao for the establishment of the new autonomous government in July 2018, and the establishment of the Bangsamoro Transition Authority in February 2019, following the municipal plebiscite. On the economic front, the Philippines government steadily implemented the tax reform agenda, including the enforcement of comprehensive tax reform laws. Symbolizing the Japan-Philippines relations, “Strategic Partnership,” reciprocal visits by high-level officials have been actively conducted. Japanese high-level visits to the Philippines included Minister of Internal Affairs and Communications Noda in January, Minister of Land Infrastructure and Transport Ishii in April, and Deputy Prime Minister Aso in May. In return, Secretary of Foreign Affairs Cayetano visited Japan in June to hold Japan-Philippines Foreign Ministers' Meeting. In November, the 6th Japan-Philippines Summit Meeting was held between Prime Minister Abe and President Duterte in Singapore. Japan-Philippines Summit Meeting (November 15, Singapore; Photo: Cabinet Public Relations Office) Japan has strongly supported active infrastructure development by the Government of the Philippines through various means, including three meetings of the Japan-Philippines Joint Committee on Infrastructure Development and Economic Cooperation in 2018, which was started specifically to follow up on the steady implementation of a one trillion yen pledge of Japanese public-private financing over five years, as announced by Prime Minister Abe in January 2017. In addition, there has been progress in Japan-Philippines security cooperation, including President Duterte's visit to the escort ship Kaga of the Japanese Maritime Self-Defense Force (JMSDF) at Subic Port and the transfer of TC-90 training aircraft from the JMSDF to the Philippine Navy. (7) Brunei Brunei has achieved high economic levels thanks to rich natural resources. However, the economic growth rate has fallen since 2014 due to causes such as drastically falling prices of crude oil around the world. Although there has been a positive recovery in the economic growth rate from the second quarter of 2017 due to gradually rising oil and gas prices, the Government of Brunei is aiming for economic diversification to avoid overreliance on energy resources. Japan and Brunei have maintained friendly relations over a long period of time. Around 60% of Brunei's liquefied natural gas (LNG) exports are bound for Japan, and LNG from Brunei makes up around 5% of the total LNG import to Japan, making Brunei an important country for the stable supply of energy resources to Japan. Through exchange projects such as “JENESYS 2.0” and the Ship for Southeast Asian Youth Program, Japan and Brunei witness frequent exchanges of young people who carry the future of Japan-Brunei relations on their shoulders. Sports exchanges, represented by badminton, are extremely important in promoting bilateral ties. Judo is steadily becoming popular while receiving cooperation from Japan with the start of the Brunei Judo Federation in April 2018. In addition, in 2018, Foreign Minister Kono visited Brunei immediately after the Cabinet reshuffle in February and held a Foreign Ministers' Meeting with Second Minister of Foreign Affairs and Trade Erywan. During this opportunity, Foreign Minister Kono also visited the Japan Maritime Self-Defense Force Overseas Training Cruise Crew, which was docked at Muara Commercial Port. From Brunei, second Minister of Foreign Affairs and Trade Erywan visited Japan in July. A Foreign Ministers' Meeting was held with Foreign Minister Kono, and in order to further activate favorable bilateral relations, they confirmed strengthening of continued bilateral cooperation in fields such as the economic diversification of Brunei, as well as cooperation for regional issues. There were also other active reciprocal visits by officials, including the visits to Japan by ministers such as Minister of Health Isham and Minister of Energy and Industry Mat Suny. Foreign Minister Kono also held his fifth Japan-Brunei Foreign Ministers' Meeting since he became Foreign Minister with Second Minister of Foreign Affairs and Trade Erywan during the ASEAN-related Foreign Ministers' Meetings held in Singapore in August, and expressed his gratitude for the contributions and cooperation from Brunei, which has been serving as the ASEAN Country Coordinator for Japan for three years since 2015. Japan-Brunei Foreign Ministers' Meeting (February 11, Bandar Seri Begawan, Brunei) (8) Viet Nam Located next to sea lanes in the South China Sea and sharing a long border with China, Viet Nam is a geopolitically important country. Given that the country embraces the third largest population in Southeast Asia, and is experiencing a surge in the number of people in middle-income brackets, Viet Nam is a promising market. The country is currently striving to realize stable economic growth through the stabilization of the macro-economy including control of inflation, the promotion of foreign investment by the development of infrastructure and the improvement of the investment environment. Viet Nam was also the seventh country to conclude the TPP11 Agreement, which occurred in November. Moreover, the Government has been engaging actively in administrative reform and anti-corruption measures. Both Japan and Viet Nam are developing cooperation in various areas under the “Extensive Strategic Partnership for Peace and Prosperity in Asia.” Reciprocal visits by officials were also actively conducted, and the late President Quang and his spouse paid a state visit to Japan in a period extending from May to June. Foreign Minister Kono visited Viet Nam to attend the World Economic Forum on ASEAN in September, and Prime Minister Phuc visited Japan to attend the Mekong-Japan Summit Meeting in October. At the Summit Meeting between Prime Minister Abe and Prime Minister Phuc in October, both leaders exchanged views, taking into account the fact that Viet Nam became the ASEAN Country Coordinator for Japan in August. 2018 marked the 45th anniversary of the establishment of Japan-Viet Nam diplomatic relations, which became an excellent opportunity to develop exchanges in various fields between the two countries by implementing over 200 anniversary projects, including cultural exchange projects. Japan-Viet Nam Summit Meeting (October 8, Tokyo; Photo: Cabinet Public Relations Office) Viet Nam has also essentially been pro-Japanese. The number of Vietnamese people visiting Japan grew from about 40,000 in 2011 to over 300,000 in 2017. The number of Vietnamese people living in Japan rose from about 40,000 in 2011 to about 290,000, the third highest nationality of people from foreign countries living in Japan. 2018 marked the 45th anniversary since the establishment of diplomatic relations between Japan and Viet Nam on September 21, 1973. During this period, the relationship between the two countries has advanced significantly, and currently the two countries are developing cooperation and exchanges in a wide range of fields, such as politics, economy, security, culture, and people-to-people exchanges, under the “Extensive Strategic Partnership for Peace and Prosperity in Asia.” Japan has been a good partner to Viet Nam during its process of promoting economic and social development and playing an active role as a member of the international community. In particular, since 1992 when Japan resumed full-fledged ODA to Viet Nam, it has consistently been the largest official development assistance (ODA) donor to Viet Nam and supported the development of Viet Nam in many areas, including infrastructure development, human resource development, poverty reduction, and health and medical care. As a result, the investment and trade between the two countries have also expanded. The number of Japanese companies operating in Viet Nam increased from about 400 companies in 2005 to over 1,800 companies last year, becoming the sixth highest in terms of the number of Japanese companies operating in a foreign country. Japan and Viet Nam are expected to further develop their economic relations, sharing high-level trade and investment rules in the region following the entry into force of the TPP11 Agreement that they concluded as member countries. Viet Nam is a pro-Japanese country. Viet Nam has a high level of confidence in Japanese people and products, and the two countries share some cultural similarities. The number of Vietnamese people visiting Japan has been rapidly increasing as Viet Nam develops and the bilateral relationship becomes stronger. The number of tourists from Viet Nam to Japan rose from about 40,000 in 2011 to more than 300,000 in 2017, and the number of Vietnamese people living in Japan has increased from about 40,000 in 2011 to approximately 290,000. The first visit by Their Majesties the Emperor and Empress of Japan to Viet Nam in spring 2017 attested to the heightened friendly relations between the two countries. Many Vietnamese people waved the flags of the two countries and provided a warm welcome along the roadsides and at destinations visited by Their Majesties. In 2018, the year marking the 45th anniversary of the establishment of diplomatic relations, the two countries held more than 200 commemorative events combined in order to further strengthen the bilateral ties. Amid growing of friendship between the two countries, H.E. Mr. Tran Dai Quang, President of the Socialist Republic of Viet Nam and his spouse Madame Nguyen Thi Hien paid a State Visit to Japan from May 29 to June 2, 2018. During the visit, President Quang visited the Maebashi Plant of Koganei Seiki in Gunma Prefecture. Koganei Seiki is a manufacturer of aircraft and automobile precision parts, including parts for Formula One cars. Thirty-four Vietnamese work as full-time employees at the company. President Quang was highly impressed by the sight of Vietnamese technicians working vibrantly together with Japanese people and commented that “this is a great honor for them.” Leaders of the two countries shaking hands (Photo: Cabinet Public Relations Office) During their stay in Japan, President Quang and his spouse attended a welcoming ceremony and a State Banquet hosted by Their Majesties the Emperor and Empress at the Imperial Palace, and conversed with Their Majesties, as well as other members of the Imperial Family. President Quang also met with Prime Minister Abe, and both leaders exchanged views on bilateral relations and international affairs. President Quang, who passed away while still in office on September 21, 2018, contributed greatly to strengthening relations between Japan and Viet Nam during his tenure. (9) Malaysia In the 14th Dewan Rakyat general election held in May, the opposition alliance (the Alliance of Hope, or Pakatan Harapan) led by former Prime Minister Mahathir (fourth Prime Minister) acquired a majority, and there was an change of administration for the first time since Malaysia achieved independence in 1957. Prime Minister Mahathir become Malaysia's seventh Prime Minister, and visited Japan as his first visit to a foreign country after taking office in June. He also visited Japan for the ceremony for the conferment of decorations (Grand Cordon of the Order of the Paulownia Flowers) in November, and confirmed close bilateral cooperation relations at the Summit Meeting. Foreign Minister Kono visited Malaysia in July in response to the assumption of office of Foreign Minister Saifuddin, having the first Foreign Ministers' Meeting with the new administration in Malaysia. Active reciprocal visits are being conducted by officials of the two countries with successive visits to Japan from the new administration in Malaysia. In regard to specific cooperation between Japan and Malaysia, cooperation has progressed in various fields. The “Agreement between the Government of Japan and the Government of Malaysia concerning the Transfer of Defence Equipment and Technology” was signed in April. During the visit to Japan by Defence Minister Mohamad in September, he and Defense Minister Onodera signed the “Memorandum of Defense Cooperation and Exchanges between the Ministry of Defense of Japan and the Government of Malaysia.” During the visit to Japan by Minister of Entrepreneur Development Redzuan in November, the “Memorandum of Cooperation on Halal Cooperation” was signed with Minister of Economy, Trade and Industry Seko. Through the Look East Policy, which serves as a foundation for the good bilateral relationship between Japan and Malaysia and was proposed by Prime Minister Mahathir in 1981, about 16,000 Malaysian people have studied or have been trained in Japan so far. The two countries are cooperating in making the Malaysia Japan International Institute of Technology (MJIIT), which was opened in September 2011, a base for Japanese-style engineering education in ASEAN countries. At the Summit Meetings held in June and November, it was confirmed that the Look East Policy not only contributed to Malaysian development but also to the bond between the people of the two countries, and it was agreed to further strengthen this. Japan-Malaysia Summit Meeting (November 6, Tokyo; Photo: Cabinet Public Relations Office) On the economic front, Japan is the biggest investor to Malaysia, and about 1,300 Japanese companies have been operating in Malaysia, demonstrating continued close cooperation between the two countries. (10) Myanmar In Myanmar, the current administration led by State Counsellor Aung San Suu Kyi has been making efforts for the consolidation of democracy, national reconciliation, and economic development. Japan is providing full-fledged support to Myanmar's democratic nation building in collaboration between public and private sectors, based on the recognition that the stability of Myanmar, which has a historical friendship with Japan, huge potential for economic development, and geopolitical importance is directly related to stability and prosperity throughout the entire region. When State Counsellor Aung San Suu Kyi visited Japan in November 2016, Prime Minister Abe expressed his intention that Japan would contribute 800 billion yen in total by public and private sectors over five years from FY2016 to 2020. Since then, Japan has been materializing its cooperation in various fields, including urban development, electricity, and transportation infrastructure. In October 2018, Prime Minister Abe held a meeting with State Counsellor Aung San Suu Kyi, who was visiting Japan to attend the Mekong-Japan Summit Meeting, and conveyed the implementation of new assistance projects to enhance civic life in the Yangon metropolitan area. Japan-Myanmar Summit Meeting (October 9, Tokyo; Photo: Cabinet Public Relations Office) There has been continuous tension since the conflict between communities began in 2012 in the western state of Rakhine. More than 700,000 people were displaced to Bangladesh due to the armed group's attacks on Myanmar security forces' bases in August 2017, the security forces' clearance operation and the subsequent destabilization of the situation. Together with the international community, Japan has been urging the Government of Myanmar to implement the “safe, voluntary, and dignified” return of displaced persons and create an environment conducive to repatriation with the involvement of the United Nations. Japan is also implementing humanitarian aid for displaced persons and host communities on the Bangladesh side and displaced persons and residents in Rakhine State. In addition, Japan is urging the Government of Myanmar to implement a transparent and credible investigation on allegations of human rights violations in Rakhine State with the involvement of the international community, and to take appropriate measures accordingly. In Myanmar, achieving peace with ethnic armed groups, who have been fighting against the Myanmar military since its independence, has also been a pressing issue. By February 2017, 10 ethnic armed groups, including Karen National Union (KNU), had signed the Nationwide Ceasefire Agreement (NCA). Japan is promoting dialogues between stakeholders in cooperation with Mr. Yohei Sasakawa, Special Envoy of the Government of Japan for National Reconciliation in Myanmar. Japan is also implementing reconstruction and development assistance, including infrastructure development for houses, schools, medical facilities, and agricultural technique training, and providing electricity to houses through solar panels in cooperation with Japanese NGOs in southeast Myanmar, including Kayin State, to improve the living standards of the residents in the areas where there is a ceasefire. (11) Laos Laos is a land locked country bordering the five countries of China, Myanmar, Thailand, Cambodia and Viet Nam, and therefore is a key country in connecting the Mekong region. With regard to domestic affairs, after the holding of the 10th Congress of the Lao People's Revolutionary Party and the 8th National Parliamentary Elections in 2016, 2018 has been a year of stable administrative operation under the single-party rule of the Lao People's Revolutionary Party. On the other hand, economic growth remained steady at around 7%, which was about the same level as the previous year, driven by electricity and mineral resources. In regard to relations with Japan, two visits to Japan by Prime Minister Thongloun Sisoulith and three Foreign Minister's Meetings through reciprocal visits by both Foreign Ministers have been held, and momentum has been maintained for close, high-level exchanges in recent years under the “Strategic Partnership.” Regarding the support in financial stability strongly requested by the leaders of the Government of Laos, Japan continued to cooperate at multiple levels in the public and private sectors by dispatching experts, holding various seminars, etc. The Government of Japan provided emergency aid goods through JICA for the large-scale water damage from the dam collapse that occurred in Attapeu Province in July. Wattay International Airport Terminal Expansion Project, the symbolic project between both countries (See Column “Wattay International Airport-Operation of international flights”), was completed in August, and a grand handover ceremony was conducted with the attendance of high-level officials from both countries. This project made an impression for strengthening regional connectivity by the Government of Japan toward achieving a “Free and Open Indo-Pacific.” In this way, for economic cooperation fields, steady progress has been seen for the “Japan-Lao PDR Joint Development Cooperation Plan” announced by both leaders in September 2016. Regarding cultural exchange, the largest-ever “Japan Festival” was held in Vientiane in February, and promoted mutual understanding by the peoples of both countries. Signing and exchange of notes ceremony following the Japan-Laos Summit Meeting (October 8, Tokyo; Photo: Cabinet Public Relations Office)