Free trade agreement to increase Indonesia’s exports to Japan

The Indonesia-Japan Economic Partnership Agreement (IJ-EPA) signed in 2008 is likely to increase Indonesia’s exports to Japan from $650 million to $1 billion by the end of 2010, according to Ansari Bukhari, Indonesia’s director general for textiles in the Industry Ministry. China currently dominates the Japanese textile market, with a market share of 75 percent. Indonesia needs assistance in accessing credit to buy Japanese textile machinery and technology to increase productivity, another goal that the IJ-EPA will help achieve. Indonesia Industry Minister Fahmi Idris says the government is also looking for new markets in the Middle East, where the current economic crisis is cushioned by oil profits.