Indonesia Did Not Violate Economic Partnership Deal With Japan: Official

Jakarta (Antara Bali) -- The Trade Ministry denied on Thursday allegations made in a Japanese media report that Indonesia had violated or failed to implement the Indonesia-Japan Economic Partnership Agreement (IJEPA).

"The Yomiuri Shimbun daily has released a wrong story. It has alleged that the Indonesian government failed to implement the IJEPA," Director General of International Trade Cooperation of the Trade Ministry Bachrul Chairi said.

The daily reported that Indonesia failed to implement the IJEPA because it did not reduce import duty on completely built-up (CBU) cars with an engine capacity of 1,500cc to 3,000cc, he added.

"The import duty currently stands at 28.1 percent. It is expected to fall gradually to 0 percent in 2023, according to the trade minister's regulation number PMK 209 of 2012, which came into effect in January 2013," Chairi pointed out.

According to the media report, the import duty stated in the IJEPA was 20 percent based on the import duty module that came into effect in 2013 and would fall to 5 percent in 2016 and beyond, he stated.

"The import duty module is a proposal for a change in import duty tariff, which was filed after the IJEPA agreement was implemented," he noted.

The deal on the tariff was a agreed upon by Indonesia and Japan through discussions, consultations, draft transposition exchange and formal meetings from October 18 to 19, 2012, in Jakarta.

"The issue here is that Japan asked for a change after it came under pressure from the automotive industry," he remarked. (WDY)