Japan-Indonesia Joint Statement
"Strategic Partnership for Peaceful and Prosperous Future"

On the occasion of the State Visit of President Susilo Bambang Yudhoyono to Japan from 26 to 29 November 2006, as the first State Guest after the establishment of the new cabinet of Japan, Prime Minister Shinzo Abe and President Yudhoyono held a Summit meeting on 28 November 2006.

The Summit proceeded in a cordial and productive atmosphere. The two leaders were satisfied with the excellent ties between the two countries and peoples which had been well nurtured since the establishment of diplomatic relations in 1958. They reaffirmed the long-standing bilateral friendship.

Both leaders exchanged views on wide-ranging issues and resolved to work together to create a promising future for the regional and global peace and prosperity. To this end, the two leaders were determined to further elevate the bilateral relations between Japan and Indonesia to a higher plane under the "Strategic Partnership for Peaceful and Prosperous Future" while addressing steadily new challenges in bilateral, regional and global issues based on the Japan-Indonesia Joint Statement "Partners for New Challenges" signed in June 2005.

In particular, the two leaders confirmed with great pleasure the agreement in principle on major elements of the Japan-Indonesia Economic Partnership Agreement as described in the separate Joint Press Statement.

The two leaders underlined that the strategic partnership between Indonesia and Japan would be a significant means to deepen and expand mutually beneficial bilateral ties and also for exploring new opportunities to promote concrete bilateral cooperation in various areas. It shall contribute to international peace, stability and prosperity in the region and beyond and also be in accordance with the principles stipulated in the UN Charter, the Treaty of Amity and Cooperation in Southeast Asia, and other universally recognized norms of international law. It should also foster closer partnership to address new challenges and non-traditional security threats such as the danger of infectious diseases including avian influenza, terrorism, natural disasters and transnational crimes. The two leaders acknowledged that human security should be addressed by the international community, in due compliance with international laws, in tackling regional and global challenges.

Prime Minister Abe emphasized that Japan had been consistently following the path of a peaceful nation more than 60 years since the end of World War II, and would continue to follow this path. President Yudhoyono highly appreciated this peaceful commitment. Prime Minister Abe expressed to President Yudhoyono his appreciation for Indonesia's independent and active foreign policy. The two leaders pledged their commitment to intensify mutually beneficial bilateral economic cooperation. President Yudhoyono expressed his sincere appreciation for the assistance and cooperation in the development of Indonesia that have been extended to date by the people and the Government of Japan, including through ODA and investment, and that the Government of Japan is committed to further strengthen on a mutually beneficial basis.

1. Progress in Bilateral Cooperation since Last Year

(1) Economic Partnership Agreement (EPA)

The two leaders emphasized that this agreement will mark a new era for Japan-Indonesia partnership, by forging closer economic relations through cooperation for capacity building, liberalization, promotion and facilitation of trade and investment between the two countries. They reconfirmed their commitment to continue exercising their leadership so that the JIEPA would be concluded as soon as possible.

The two leaders also welcomed the cooperation of private sectors in promoting JIEPA, including capacity building of SMEs in Indonesia and expanding and developing activities aimed at promoting trade and investment between Japan and Indonesia, through the new initiative signed between Japan's External Trade Organization (JETRO) and Indonesian Chamber of Commerce and Industry (KADIN).

(2) Strategic Investment Action Plan (SIAP)

The two leaders welcomed the Progress Report prepared by the Planning and Coordination Committee of the High Level Public/Private Sector Joint Forum on Investment, in which a significant progress was achieved on 70 % of the total 118 action items under SIAP. Both leaders requested the Forum to continue its intensive efforts to improve the investment climate in Indonesia immediately.

(3) Maritime Affairs

Prime Minister Abe recognized that the Government of Japan fully respects the sovereignty and sovereign rights of the Republic of Indonesia over its territorial sea and exclusive economic zone (EEZ) within the Straits of Malacca and Singapore which is a strait used for international navigation. President Yudhoyono reaffirmed and underlined the commitment of the Government of Indonesia to continue its efforts to ensure security in the Straits of Malacca and Singapore. In this regard, President Yudhoyono expressed his appreciation for the Japanese grant aid for the project on the construction of patrol vessels. The two leaders also expressed the commitment to promote cooperation in capacity building and the importance of seeking a new cooperation mechanism between littoral States and user States for enhancement of safety, security and environmental protection.

(4) Disaster Reduction

The two leaders welcomed the report prepared by the Joint Committee on Disaster Reduction in July 2006, which suggested a comprehensive and effective means for disaster mitigation and preparedness. The two leaders were committed to promote the disaster reduction and to further cooperate between the two countries in this field, taking account on the said report. In connection with the recent earthquakes and tsunamis, the two leaders were pleased to observe that the Japanese financed projects, including "Urgent Recovery of the West Coast Road to Achieve Temporary Connection between Banda Aceh and Meulaboh", have contributed to the steady progress of the local rehabilitation and reconstruction.

The two leaders welcomed the regional cooperation for disaster reduction such as database and research network building that had been commenced in the areas prone to earthquakes in Asia, and shared the view that the regional cooperation including that involving both countries' space organizations, would contribute to the disaster reduction.

2. Cooperation under "Strategic Partnership for Peaceful and Prosperous Future"

(1) Toward Further Strengthening Strategic Partnership

The two leaders reconfirmed that Japan and Indonesia share such basic values as freedom, democracy, human rights and rule of law and also shared commitment to stability and development of the Asia Pacific region. They also affirmed that they would strengthen the strategic relationship in addressing political and security issues, as well as reinforced the long-standing economic relations.

Both leaders emphasized the importance of holding summit meetings between them as frequently as possible and agreed to intensify high-level consultations taking advantage of opportunities at regional and multilateral meetings. Furthermore, the two leaders were of the view that regular consultations between the foreign ministers of both countries are also conducive to promoting further bilateral cooperation.

The Eminent Persons' Group (EPG) can be established as necessary to provide the leaders with studies and recommendations on means to further broaden and deepen the bilateral relations within the context of the strategic partnership, through developing new initiatives in the areas including politics, economy, culture, science and technology, education and tourism.

Prime Minister Abe highly valued vigorous measures by President Yudhoyono in promoting democracy as well as economic reforms. Prime Minister Abe applauded President Yudhoyono's efforts to find a peaceful solution to the Aceh issue which resulted in the Aceh Peace Agreement in August 2005 and the enforcement of Law on the Governance of Aceh in August 2006. Prime Minister Abe also expressed his strong hope that the scheduled elections of heads of local governments in Aceh on 11 December 2006 would proceed in a fair and smooth manner. In this regard, Prime Minister Abe expressed the willingness of the Japanese Government to dispatch a monitoring mission for the said elections. Prime Minister Abe also pledged to extend Japan's assistance in promoting the self-reliance of the local community in Aceh in the aftermath of the earthquake and tsunami, with a view to contributing to the consolidation of sustainable peace in Aceh.

The two leaders highly appreciated the fruitful discussion on the first human rights dialogue between the two countries, held in July 2006. They shared the view that the two countries have to enhance their cooperative relationship in the area of human rights both bilaterally and multilaterally.

Prime Minister Abe reconfirmed Japan's continued support for the attainment of the ASEAN Community and the central role of ASEAN efforts towards open, transparent and inclusive East Asia community building. For the long-term peace, stability and prosperity in East Asia, the two leaders reiterated their intention to enhance regional cooperation that would produce tangible benefits to address the region's common challenges, with a view to promoting regional integration in East Asia, under a variety of frameworks including the East Asia Summit and ASEAN Plus Three. In this regard, the two leaders shared the importance of a track two process to promote Economic Partnership in ASEAN, Australia, China, India, Japan, Republic of Korea and New Zealand as well as the Economic Research Institute for ASEAN and East Asia (ERIA) as proposed by Japan.

The two leaders reiterated their strong commitment to the principles and the objectives of the NPT. They expressed their grave concern about the recent missile launches and the nuclear test conducted by the DPRK that have created more tension. They urged the DPRK to implement fully the UN Security Council Resolution 1695 and 1718. They welcomed the recent progress on resuming the Six Party Talks. They also urged the DPRK to respond to other security and humanitarian concerns of the international community, including the abduction issue.

The two leaders shared the view that the threat of terrorism remains a regional and global security concern and reaffirmed their determination to prevent, suppress and eliminate all forms of terrorism. To this end, the two countries will cooperate closely in information exchange, Counter-Terrorism capacity building, addressing the root causes of terrorism, empowering the moderates, interfaith dialogues, ASEAN-Japan Counter-Terrorism Dialogue and other regional approaches.

Prime Minister Abe congratulated President Yudhoyono on Indonesia's election to the seat of the UN Security Council and looked forward to Indonesia's positive contribution during its tenure. The two leaders also resolved to work together for achieving early reform of the Security Council through expanding its membership in both permanent and non-permanent categories. President Yudhoyono appreciated Japan's active role in maintaining international peace and security and, in the context of the reform of the Security Council, expressed Indonesia's support for Japan's permanent membership in the Council.

Following the current challenges which the NPT regime is facing, the two leaders expressed their intention to enhance further the bilateral collaboration with a view to maintaining and strengthening the international nuclear disarmament and non-proliferation regime based on the NPT as the cornerstone. Both leaders also shared the need of the early entry into force of the CTBT.

(2) Strengthening of the Mutually Beneficial Relationship

The two leaders reaffirmed that the bilateral economic relations have developed as multiple-layered interactions, including in the field of trade and investment.

The two leaders also discussed the bilateral as well as international energy situations. They also welcomed the planned Japanese investments in the oil and gas fields as well as power generation. Prime Minister Abe expressed Japan's strong interest in ensuring the stable supply of energy from Indonesia, notably Liquefied Natural Gas (LNG), to Japan. With full understanding of the remarks made by Prime Minister Abe, President Yudhoyono pledged to honor the existing contracts which would expire in 2010 and 2011. The two leaders pledged to develop a closer relationship in order to better maintain cooperative relations to enhance the energy security in both countries regarding this issue. President Yudhoyono encouraged Japan to promote its energy exploration and exploitation activities in Indonesia especially for the purpose of discovering new oil and gas fields. President Yudhoyono also invited Japan to promote bilateral cooperative activities and mutually beneficial investment relating to the joint development, including capacity building, of sustainable and renewable energy, such as bio-fuels and bio-mass. The two leaders also welcomed the promotion of Biomass energy projects based on the framework signed between the Ministry of Energy and Mineral Resources of Indonesia and Japan Bank for International Cooperation.

The two leaders shared the view that it is important to pursue further development of energy and mineral resources cooperation between the two countries including the cooperation under the JIEPA. Prime Minister Abe expressed the intention to cooperate, through the human resources development such as dispatch of experts, on (i) promotion of clean coal use including commercialization of coal liquefaction, (ii) improvement of energy efficiency, and (iii) institutional assistance for introduction of nuclear power generation, stressing the necessity of nuclear safety, security and non-proliferation in this regard. The two leaders welcomed the signing of the Joint Statement between the Ministry of Economy, Trade and Industry of Japan and the Ministry of Energy and Mineral Resources of the Republic of Indonesia.

(3) Strengthening Partnership through Specific Cooperation

President Yudhoyono expressed his sincere gratitude for Japan's cooperation to the Engineering Services for Jakarta Mass Rapid Transit System Project by providing a yen loan. The two leaders shared the recognition that this cooperation would contribute not only to alleviating Jakarta's traffic situation but also to enhancing investment climate in Indonesia through economic infrastructure development.

The two leaders shared a need, with a view to further promoting bilateral trade and investment, for a preliminary meeting between competent authorities of both countries with respect to considering the possibility of mutually agreed revision of the 1982 Japan-RI Agreement on the Avoidance of Double Taxation.

The two leaders affirmed the need for a closer cooperation between the two countries in the fields of education as well as science and technological researches especially between Japanese and Indonesian universities.

Prime Minister Abe pledged to provide the assistance for the study on Disaster Management in Indonesia with a view to improving the capacity of the Indonesian Government in effective disaster reduction. In addition, the two leaders welcomed the assistance of the Japanese Government for the rehabilitation and reconstruction currently underway in the fields of rebuilding schools, health services and other public infrastructures as well as dissemination of know-how on earthquake-proof buildings after recent earthquakes and tsunamis.

The two leaders shared the concerns of the expanding avian influenza in the Asia region including Indonesia. They reaffirmed that the two countries should further intensify exchanges of information in a prompt manner, with a view to constantly exercising precautions against the evolving situation of the avian influenza. President Yudhoyono expressed the strong commitment of the Indonesian Government to tackle this issue as a high priority and valued Japan's enhanced assistance in the areas of capacity building to prevent and contain an emerging avian influenza pandemic, surveillance and early intervention in response to outbreaks.

(4) Building Bridge for the Future

(i) The 50th Anniversary of the Establishment of Bilateral Diplomatic Relations

Mindful of Year 2008 that celebrates the 50th anniversary of the establishment of diplomatic relations between the two countries, the two leaders shared the view that the 50th anniversary would offer great opportunities to further strengthen the time-honored friendship in wide-ranging areas in order to advance the "Strategic Partnership for Peaceful and Prosperous Future". They also shared the significance to promote a variety of commemorating events with the aims of broadening and deepening exchanges and cross-generation mutual understanding between the peoples of the two countries towards the next half century.

(ii) People-to-People Contacts and Cultural Cooperation

The two leaders acknowledged that the greater people-to-people contacts, in particular among the younger generations, would provide a more solid foundation for strengthening the future-oriented relationship, mutual understanding and friendly ties between the two countries and their peoples. Prime Minister Abe conveyed the willingness of the Japanese Government to cooperate on a new scholarship program for the development of human resources in higher education in Indonesia.

The two leaders also expressed their firm belief that cultural cooperation would also contribute to carrying forward the vision of the bilateral partnership. Prime Minister Abe expressed the intention of the Japanese Government to consider positively the provision of substructural assistance for the restoration of the Prambanan temple in Yogyakarta, which had been damaged by the earthquake that hit Central Java in May 2006.

Signed in Tokyo, 28 November 2006

Susilo Bambang Yudhoyono
President of the Republic of Indonesia

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