Indonesia Hails Japan as Key Economic Partner

RRI.CO.ID, Jakarta - Minister of Trade Budi Santoso emphasized Japan’s role as a significant pillar in Indonesia’s economic growth and regional prosperity.

Speaking at the Japanese National Day Reception in Jakarta on Thursday, February 5, 2026, he underlined the evolution of bilateral ties into a strategic partnership built on trust and a shared vision for a stable and prosperous Indo-Pacific.

The reception was held to mark Emperor Naruhito's 66th birthday, which falls on February 23.

“Our relationship has evolved from a single trade relationship to a strategic partnership built on mutual trust and a shared vision for a stable and prosperous Indo-Pacific,” Minister Budi Santoso said, as quoted by Antara.

He noted that Japan has consistently been one of Indonesia’s most important trading partners through the Indonesia–Japan Economic Partnership Agreement (IJEPA), which has been in place since 2007. 

The agreement aims to strengthen trade and investment through liberalization, facilitation, and capacity building. Cooperation between the two countries extends beyond goods to include skills and technology transfers.

In 2025, bilateral trade reached USD 32 billion (around IDR 539.5 trillion), placing Japan as Indonesia’s fourth-largest trading partner. Minister Budi Santoso said he expects cooperation to expand further following the signing of a protocol last year to amend the partnership agreement.

“Expanding our market access is crucial to Indonesia’s national interests. We strongly encourage Indonesia’s international trade agenda. We are open to trade negotiations,” he said.

Minister Budi Santoso added that Indonesia currently has 20 active international trade agreements, with 15 awaiting ratification and 11 still under negotiation. He urged the business community to leverage these agreements to maximize market opportunities.

Japan also remains a major investor in Indonesia, particularly in infrastructure, manufacturing, and automotive sectors. In 2025, Japanese investment totaled USD 3.1 billion (around IDR 52.3 trillion), making Japan the country’s fifth-largest investor.

The Minister highlighted several large-scale infrastructure projects supported by Japan through public-private partnerships and development assistance. 

These include the MRT Jakarta, which has transformed urban mobility in the capital; the Patimban Deep Sea Port, which has strengthened national logistics capacity; and Integrated Marine and Fisheries Centers, which continue to drive growth in the maritime economy.

Looking ahead, Indonesia sees potential for collaboration in the digital economy, renewable energy, and sustainable supply chains. Minister Budi Santoso pointed to the Asian Zero Emission Community (AZEC) initiative as an example of future cooperation.

“We are working on the Asian Zero Emission Community (AZEC), proving that economic growth and environmental stewardship can go hand in hand,” he said. ***