# Japan and Indonesia Commit to Trade Barrier Removal in Updated Agreement

- Link: https://www.thailand-business-news.com/china/124098-japan-and-indonesia-commit-to-trade-barrier-removal-in-updated-agreement
- Published: 2024-01-29T10:08:18+07:00
- Author: ASEAN Briefing

**Japan and Indonesia are expanding trade cooperation and reducing tariffs on various
goods under an amendment to the Indonesia-Japan Economic Partnership Agreement.**

## Agreement to Lift Trade Barriers

Japan and Indonesia have agreed to lift trade barriers and deepen collaboration 
in various fields, as announced by Indonesia’s Foreign Minister Retno Marsudi. This
new agreement comes under the framework of an amendment to the Indonesia-Japan Economic
Partnership Agreement (IJEPA), a bilateral investment and trade treaty signed in
2007. The amendment seeks to achieve “a mutually beneficial economic partnership
between Japan and Indonesia, by further facilitating the expansion of existing trade
and economic cooperation”, according to a joint ministerial statement.

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## Tariff Reductions and Trade Cooperation

According to the Japan External Trade Organization (JETRO), Japan will reduce tariffs
on 114 new items and expand the tariff allocation quota for bananas and lightweight
pineapples. In addition, Indonesia had previously urged Japan to remove tariffs 
on food products, especially canned tuna. Meanwhile, Indonesia will eliminate or
reduce tariffs on 19 Japanese goods, including automobiles, steel, steel products,
and rice flour, according to JETRO.

## Market Access Improvements

Indonesia will also improve market access for Japanese short-grain rice, including
establishing a low-tariff import quota with an allocated quantity of 8,500 tons 
and an in-quota tax rate of 450 rupiah per kilogram (approximately 4.1 yen or US
$0.03). This agreement marks a significant step forward in enhancing trade relations
between the two countries.

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