Indonesia –Japan Business Dialogue

Mrs. Shinta W. Kamdani

Deputy Chairwomen of Employers Association of Indonesia (APINDO),

Indonesia -Japan Business Dialogue,

Jakarta 2 February 2015


Honourable Dr. Akio Mimura, Chairman Japan Chamber of Commerce and Industry

Honourable Mr. Suryo B. Sulisto, Chairman KADIN

My fellow Board Members, and fellow Indonesian and Japanese Businessmen

Dear Ladies and Gentlemen,

Good Afternoon,

I think you would all agree that today's business dialogue had a very good and constructive discussion.

It is clear that there is a large interest from the private sector of both sides to further increase and strengthen our cooperation, that there is mutual interest to boost trade and investment between our two nations as well as to explore untapped business opportunities.

We therefore should make maximum use of this business dialogues forum which benefits our business communities in exchanging views, thoughts, information and best-practices to support the Indonesian -Japanese Relation.

This Forum should also be used to explore concrete investment and trade opportunities which are of mutual interest and benefits and as a channel to tell our governments what measures are required to achieve higher economic growth. Our governments should taking  the role as facilitator need to hear the real voices from businesses on the ground, should facilitate trade & investment flows which can improve cooperation & transparency in various fields.  

Ladies and Gentlemen,

The President of The Republic of Indonesia, Mr. Joko Widodo officially launched the One Stop Service (OSS) Center at Coordinating Investment Board (BKPM). The President instructed that investors, who are applying for licenses, should no longer need to visit various ministries or government agencies, simply come to the OSS Center in BKPM.  Licensing integration at the OSS Center is expected to be a "milestone" for the development of Indonesia.

This is a good example that public service is easy and uncomplicated. The Governments should have commitment to improve their public services through bureaucratic reform.

Ladies and Gentlemen,

We imagine to intensify cooperation between respective business organizations of our countries, taking into consideration that they represent a large number of member companies in various sectors to provide more opportunities that can be explored. We hope this forum should also take into consideration to be beneficial to a broader range of stakeholders (e.g SMEs).

With all due respect to all  Japan Companies who have been operating  in Indonesia for so many years and have been an important partner in the economic development of our beloved country, however we would like to see a more active trade and investment engagement by the "new" Japanese players here in Indonesia aiming to ensure sustainable economic growth and to increase the competitiveness of our products and industries.

According to Coordinating Investment Board (BKPM) data, the amount of foreign investment in Indonesia from January to September 2014 reached US$21.7 billion.  Japan is the second largest investor  in Indonesia after Singapore with total investments reaching $2.1 billion. Japan and Indonesia are strategic partners.  Indonesia and Japan was had first bilateral free-trade agreement which had come into effect on 1 July 2008. The agreement, IJEPA, was made in an effort to enhance the cross-border flow of goods and people as well as investment between both countries. The agreement also provided room to smoothen Japan's foreign direct investment (FDI) in Indonesia.

After the IJEPA had been in effect for 5 (five) years, our Indonesian's government will review the agreement, may be conducted this year and hopes that the partnership can contribute to the Indonesian government's ambitious target to raise economic expansion to 7 (seven) percent by the end of 2019 and can boost Indonesian exports to Japan and to facilitate Japanese FDI into Southeast Asia's largest economy.  

Last but not least, on behalf of Business Community in Indonesia, we look forward to facilitate business and investment interests between our two countries.

Thank you very much.

Feb 03 2015 |