[Kabar-indonesia] SBY to visit Japan to pave way for agreement, discuss N. Korea

[Joyo at aol.com]

The Jakarta Post
November 1, 2006

SBY to visit Japan to pave way for agreement, discuss N.
Korea

Abdul Khalik, The Jakarta Post, Jakarta

President Susilo Bambang Yudhoyono is scheduled to visit
Japan from Nov. 26 to 29 to talk about enhancing bilateral
ties, the Japanese Embassy in Jakarta says.

Yudhoyono and wife Kristiani would meet Japanese Prime
Minister Shinzo Abe along with Emperor Akihito and Empress
Michiko.

"The government of Japan sincerely welcomes the visit of the
President and Mrs. Kristiani, which will further strengthen
the friendly relations between Japan and Indonesia," the
embassy said in a statement.

Trade Ministry director-general for international trade
Herry Soetanto said the President's visit was expected to
clarify negotiations on the much-awaited Indonesia-Japan
Economic Partnership Agreement (EPA).

"We are still negotiating several components of the EPA.
Both leaders will certainly discuss the issue, and we hope
that the talks will speed up the signing of the agreement,"
Herry told the Post.

After the latest round of talks in Tokyo earlier this month,
Japan said the two countries had made progress in areas,
including goods and services and investment rules, but
further negotiations were still needed in the energy sector.

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 the
liberalization of trade in goods and services and
cooperation in the fields of investment, public policy and
labor.

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

The EPA is wider in scope than a free trade agreement,
involving technical assistance along with economic and trade
issues.

Indonesia has signed less trade agreements with Japan and
other advanced nations than other Southeast Asian countries.

Observers believe Yudhoyono should use Indonesia's
increasingly close ties with China as a bargaining position
in talks with Abe.

A member of the House of Representatives Commission XI on
finances, Dradjad Wibowo, said the timing of the
announcement of Yudhoyono's visit to Japan during the China-
ASEAN dialog clearly indicated Japan was interested in
making deals with ASEAN countries.

"I think China's rise and its closeness to ASEAN, especially
Indonesia, has affected Japan. Yudhoyono should use this as
leverage to gain full economic benefits, such as debt
renegotiations (with Japan)," he told the Post.

Foreign Ministry director-general for Asia, the Pacific and
Africa Primo Alui Joelianto said the two leaders would also
talk about several regional issues, including the nuclear
drama in the Korean peninsula.

"The North Korean nuclear issue is very important to both
countries as it could destabilize the region," he told the
Post.

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Joyo Indonesia News Service
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