1. We, the Prime Minister of Japan, Mr. Shinzo Abe and the President of the Republic of Indonesia (hereinafter referred to as "Indonesia"), Dr. Susilo Bambang Yudhoyono, held a meeting in Jakarta on August 20, 2007, and exchanged views on wide-ranging issues, including ways to further strengthen the long-standing bilateral relations between our two countries. We also discussed means of deepening our "Strategic Partnership for Peaceful and Prosperous Future", as we signed in Tokyo on November 28, 2006, on the occasion of President Yudhoyono's visit as State Guest to Japan. Bearing in mind that in the year 2008, Japan and Indonesia will celebrate the 50th anniversary of the establishment of diplomatic relations, we believe that the cordial and time-honored friendship between our two countries should be elevated to a higher level in all aspects, such as political, economic, social and cultural, and at all levels, including at the people-to-people level.
  2. Reaffirming the importance of shared values, such as freedom, democracy, basic human rights and rule of law, we have resolved to work closely together to promote these values and to address new challenges at the bilateral, regional and global levels. We also commit ourselves to address new economic and strategic challenges and to explore new opportunities, both of which are presented by globalization, together through concrete bilateral cooperation. Thus, today, by signing the Agreement between Japan and the Republic of Indonesia for an Economic Partnership (hereinafter referred to as "the JIEPA"), we have marked a new era for Japan-Indonesia partnership and started a new chapter of our "Strategic Partnership for Peaceful and Prosperous Future".
  3. We believe that a closer economic partnership between Japan and Indonesia will promote mutually beneficial economic ties between the two countries, and contribute to realizing multi-layered cooperation for capacity building in various ways. We also share the strong need to further facilitate cross-border flows of goods, investment, services and natural persons, and to work together and cooperate further in order to maximize the benefits for all, including small and medium enterprises.
  4. We believe that the JIEPA will contribute positively to the achievement of the objectives of the WTO multilateral trading system. We also reaffirm the importance of expeditiously concluding the WTO Doha Development Agenda (DDA) negotiations. We stressed the importance of continuing and strengthening the cooperation between our two countries in the WTO DDA negotiations in a comprehensive manner, including in areas such as Agriculture, NAMA, Services and Trade Facilitation as well as in negotiations aimed at clarifying and improving disciplines under the Agreement on Implementation of Article VI of the GATT 1994 (the Anti-dumping Agreement).
  5. The JIEPA will cover wide-scope of areas with a view to strengthening the economic partnership between our two countries, including cooperation for capacity-building with participation of our respective industries; liberalization, promotion and facilitation of trade and investment aimed at increasing the cross-border flows of goods, investment and services; and facilitation of the movement of natural persons between our two countries. Furthermore, it provides for the arrangement for trade and investment in the energy and mineral resources sector aimed, inter alia, at ensuring energy security in both countries. Such arrangement serves to protect and expand interests and opportunities for investments in both countries in this sector, including that of electric power generation, exploration and exploitation of oil and gas and mineral resources. It also serves to promote cooperation in this sector, including the development of alternative energy. In addition, the JIEPA provides for the arrangement with regard to information exchange on government procurement, protection of intellectual property, promotion of competition by addressing anti-competitive activities as well as improvement of business environment and promotion of business confidence. Statements on Cooperation and Movement of Natural Persons are attached to this Joint Statement.
  6. We express confidence that the JIEPA will create a climate that will greatly facilitate the boost of Japan's investment and the establishment of its production bases in Indonesia. We also hope that, by signing the JIEPA, Japan and Indonesia will foster our respective economic competitiveness and further strengthen the partnership through cooperation for capacity-building, which will bring prosperity and stability to peoples in our two countries and lay an important foundation for building an East Asian community.
  7. We, representing the Governments and peoples of both Japan and Indonesia, now celebrate the signing of the JIEPA which will bring our relationship to a higher level.

Jakarta, August 20, 2007

Mr. Shinzo Abe
Prime Minister of Japan
Dr. Susilo Bambang Yudhoyono
President of the Republic of Indonesia



(1) Taking into account Japan's policy of economic and financial cooperation for Indonesia and Indonesia's National Medium-term Development Plan, the two leaders affirm that Japan and Indonesia will promote cooperation in the fields of manufacturing industries, agriculture, forestry and fisheries, trade and investment promotion, human resource development, tourism, information and communications technology, financial services, government procurement, environment, energy and mineral resource and other fields upon agreement between the two countries in accordance with the relevant provisions of the JIEPA.

(2) Especially, in the long-term framework of "Initiative for Manufacturing Industry Development Center", the two governments will jointly work to enhance competitiveness of Indonesian manufacturing industry in various sectors, namely, Metalworking, Tooling (Mold & Die) Technique, Welding Technique, Energy Conservation, Small and Medium Enterprise Promotion Support, Export and Investment Promotion, Automotive/Auto parts, Electric/Electronic Equipment, Steel/Steel Products, Textile, Petrochemical, Oleo-chemical, Non Ferrous and Food & Beverages. In order to implement cooperation projects, various forms of cooperation scheme will be considered, including Basic Study, Dispatchment of Expert, Provision of Equipment, Training, Seminar/Workshop, Visiting Japanese Companies based on the shared understanding of the two governments on the necessity and feasibility of projects in each sector.

(3) The two governments will jointly work on the project on "Distribution Mechanism Reform Through Development of Wholesale Market (Improvement of Post-Harvest Handling and Marketing Facilities)".

(4) Cooperation Projects and Programs

  • (a) The projects and programs specified in Appendix are implemented as Early Harvest Projects.
  • (b) The projects and programs will be periodically discussed and reviewed at the relevant Sub-Committees.
  • (c) Any matter that may arise from the implementation of the projects and programs, including additional future projects and programs related to sectors mentioned in paragraphs (2) and (3), will be discussed at the relevant Sub-Committees.

(5) As a response to Indonesia's request to Japan for making appropriate efforts to widen the scope of training and internship program in the field of tourism, Japan expresses its willingness to consider this request in a favourable manner.


Japan and Indonesia share a common view that the movement of natural persons involved in business activities should be encouraged. Based on the past bilateral consultations, Indonesia reaffirms its commitment to facilitate and simplify procedures concerning Japanese business activities in Indonesia, in accordance with the relevant laws and regulations of Indonesia.


1. Manufacturing Industries

Cooperation of Manufacturing Industries will be implemented under the "Initiative for Manufacturing Industry Development Center" in various sectors. The representative examples of activities on which the two sides will focus as soon as the JIEPA enters into force are as follows:

  • (a) Basic Study (Main Sector: Metal Working, Tooling (Mold & Die) Technique, Welding Technique, Automotive/Automotive parts, Steel/Steel Products, Textile, Petrochemical, Oleo-chemical, Non Ferrous)
  • (b) Dispatchment of Expert (Main Sector: Tooling (Mold & Die) Technique, Energy Conservation, Automotive/Automotive parts)
  • (c) Training (Main Sector: Tooling (Mold & Die) Technique, Automotive/Automotive parts, Electric/Electronic Equipment, Textile)
  • (d) Seminar/Workshop (Main Sector: Tooling (Mold & Die) Technique, Energy Conservation, Steel/Steel Products, Textile)

2. Agriculture, Forestry and Fisheries

  • (a) Distribution Mechanism Reform Through Development of Wholesale Market (Improvement of Post-Harvest Handling and Marketing Facilities)
  • (b) Standardization and Quality Control for Horticulture Products of Indonesia (Improvement of thermal treatment technique against fruit flies on fresh mango)
  • (c) Technical Assistance to Small and Medium Enterprises in Indonesian Fish and Shrimp Industry
  • (d) Project for Sustainable Indonesian Fisheries Product Competitiveness
  • (e) Sub-Sectoral Program on Mangrove
  • (f) Project for Facilitating Development of Wood Industry in Small Diameter Logs Processing

3. Trade and Investment Promotion

Cooperation of Trade and Investment Promotion will be implemented under the "Initiative for Manufacturing Industry Development Center". The representative examples of activities on which the two sides will focus as soon as the JIEPA enters into force are as follows:

  • (a) Dispatchment of Expert
  • (b) Training (Covered by Training for Strengthening Export Promotion Organization and Export Competitiveness)
  • (c) Seminar

4. Human Resource Development

Capacity Building and Construction Management

5. Tourism

Project for Tourism Product Development

6. Financial Services

  • (a) Economic, Fiscal and Financial Policy Advisor
  • (b) Training for Financial System

7. Government Procurement

Technical Advisor for Electronic Government Procurement Infrastructure Development

8. Energy and Mineral Resources

  • (a) Geothermal Energy Development in the Republic of Indonesia
  • (b) Project Cooperation on the Development of Training for Environmental Monitoring Power Plant
  • (c) Formulation Study for Energy Conservation
  • (d) Coal Mining Technology Enhancement Project (follow up)
  • (e) Inventory and Evaluation of Underground Coal Mine in Indonesia
  • (f) Education and Training Project on Energy Management
  • (g) Development of Coal Liquefaction in Indonesia
  • (h) Development of Upgraded Brown Coal (UBC) Demonstration Plant in Indonesia
  • (i) Coal Bed Methane (CBM) in Indonesia

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