[Kabar-indonesia] Yudhoyono wants to speed up EPA with Japan

[Joyo at aol.com]

The Jakarta Post 
Saturday, June 24, 2006

President wants to speed up EPA with Japan

The Jakarta Post, Jakarta

President Susilo Bambang Yudhoyono urged Indonesian and Japanese trade 
officials to speed up negotiations on a proposed economic partnership agreement 
(EPA) between the two countries so that a deal could be signed by the end of this 
year.

"The President hopes the EPA negotiations can be completed by the end of this 
year," presidential spokesman Dino Pati Djalal told reporters Friday, after 
presenting the results of a meeting between Yudhoyono and visiting senior 
Japanese lawmaker Yasuo Fukuda.

Fukuda is one of four senior Liberal Democratic Party legislators expected to 
run for the party leadership to replace Japanese Prime Minister Junichiro 
Koizumi when he leaves office at the end of his term in September.

Indonesia and Japan agreed in July last year to begin working toward the 
signing of an EPA, a comprehensive bilateral economic agreement that would include 
not only the liberalization of trade in goods and services, but also 
cooperation in the fields of investment, competition policies and the movement of 
people. The two sides have engaged in several rounds of negotiations to date.

Although the negotiations between Japan and other countries for similar 
agreements took about two years to complete, the hope has been expressed by both 
sides that the talks can be accelerated to show to the world that they are 
serious about the plan. Indonesia is also in a race with other countries in the 
region to sign EPAs with Japan.

Some, however, have warn officials not to sacrifice the substance of the 
agreement by trying to seal it too quickly.

Japan is Indonesia's largest trading partner. Two-way trade amounting to 
US$24.9 billion last year, with an $11.1 billion surplus in Indonesia's favor. 
Japan is also among Indonesia's largest investors, with approved investment plans 
amounting to $1.68 billion in value last year.

Elsewhere, Dino said that the Indonesian government had also invited Japan to 
assist in the development of bioenergy production plants.

"Fukuda said he's interested in the proposal and will study it," Dino said, 
without elaborating.

The government wants to diversify its energy sources by making use of 
biofuels derived from plantation products, including crude palm oil.

The diversification effort is aimed at reducing the country's dependence on 
more expensive petroleum-based fuel products.

Although Indonesia is a member of the Organization of Petroleum Exporting 
Countries, lack of investment in the country's oil sector has significantly 
reduced output in recent years, turning the country into a net oil importer last 
year. 

------------------------------------------
Joyo Indonesia News Service
------------------------------------------