economy

Japan's Ministry Of Economy, Trade, And Industry (METI) Is Stepping Up Its Collaboration In The Automotive Industry, Industrial Workforce Development, And Energy Transition

Indonesia and Japan support each other and both benefit from cooperation in the industrial sector. Japan has a long history of supporting industrialization in Indonesia by bringing investment in the manufacturing industry sector to the country. On the other hand, Japan sees Indonesia as an important country in the industrial supply chain.

This was highlighted during the meeting between the Minister of Industry, AgusGumiwangKartasasmita, and the Minister of Economy, Trade, and Industry (METI) of Japan, Mr. Ken Saito, in Tokyo on Friday (21/6).

During the meeting, the Minister of Industry conveyed several important issues that need to be discussed with METI in order to enhance cooperation between Indonesia and Japan in the industrial sector. First, it is related to energy transition.

Previously, Indonesian President Joko Widodo and Japanese Prime Minister Fumio Kishida had discussed priority projects in the field of energy transition within the framework of the Asia Zero Emission Community (AZEC) in Japan in December 2023. The Minister of Industry noted the progress related to its implementation and welcomed the steps that have been taken.

Second, the Minister of Industry encouraged the completion of substantive negotiations on the Protocol Amendment to the Indonesia-Japan Economic Partnership Agreement (IJEPA). Currently, within the framework of IJEPA, both countries have completed substantive negotiations on the Protocol Amendment to IJEPA.According to the Minister of Industry, IJEPA is very important and strategic for both countries, including in this case the New MIDEC (Manufacturing Industry Development Center) cooperation program.

Therefore, the Minister of Industry hopes for the support of METI Japan in promoting the implementation of IJEPA and the future implementation of the New MIDEC activities.

Next, the third issue raised by the Minister of Industry is regarding cooperation in the automotive sector. The Minister appreciates the Japanese automotive companies that have been consistently performing well, including their involvement in deepening the structure by engaging SMEs in the automotive production ecosystem in Indonesia.Considering this positive condition, the Minister encourages increased cooperation to participate in the development of the electric vehicle ecosystem in Indonesia. Additionally, the Minister also highlights the significant opportunity for the Japanese automotive industry to fill the consumption per capita gap for automotive products."Currently, the ownership ratio of four-wheeled vehicles in Indonesia is 99 cars per 1,000 people. I believe that in the near future, we can push it to reach 150 per 1,000. Therefore, I hope that Japanese car products can fill this gap," stated the Minister.

The fourth issue is about cooperation in the development of Human Resources (HR). To increase the number of competent HR in the industry, the Minister presents a plan for industrial HR exchange between Indonesia and Japan. This way, Indonesian industrial HR can receive specific training in Japan, enabling them to acquire better knowledge and skills."When they return from Japan, they can also assist Japanese companies in Indonesia or establish startups that can support the development ecosystem of Japanese companies in Indonesia," he explained.

The Japanese Minister of Economy, Trade, and Industry welcomes the ideas presented by the Minister of Industry to enhance cooperation between the two countries. He explains that METI pays great attention by allocating a budget to promote cooperation with the global south region as a whole.

Regarding cooperation in the automotive industry with Indonesia, they acknowledge that Indonesia is an important base for Japanese automotive production and exports.

Tag: Automotive Energy Transition Japan's Ministry Of Economy