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back to home | Jakarta, August 3rd, 2022 | B20 Secretariat

B20 Promotes Trade-Investment, Energy Transition, And Sustainable Projects In Japan

Jakarta, August 3rd, 2022

The B20 Indonesian Delegation held a roadshow to G20 countries. After previously conducting roadshows in the context of socializing the B20-G20 Presidency in Europe, the United States, Canada, and Singapore, this time the delegation visited Japan. 

 

During the visit which took place on Thursday (27/7/2022), the B20 delegation held two important meetings, namely with the Indonesia-Japan Business Forum and the Japan External Trade Organization (JETRO) to discuss economic and trade partnerships and strengthen bilateral relations between the two countries. JETRO is an institution that plays an important role in promoting trade and investment cooperation between Japan and various countries.

 

Government and business leaders from two countries attended the B20 Indonesia - Japan Business Forum, which was conducted in collaboration with the Indonesian Ministry of Investment/BKPM, the Indonesian Ministry of Industry, the Indonesian Embassy in Tokyo, and JETRO. Some of them include JETRO Chief Executive Officer Nobuhiko Sasaki, Indonesian Coordinating Minister for the Economy Airlangga Hartarto, Indonesian Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, and Japan's Deputy Minister of Economy, Trade, and Industry Kensoda Hosoda.

 

Another important agenda in this visit is a special meeting to discuss B20 Indonesia's agenda and to oversee B20 Indonesia's policy recommendations that will be pushed into the G20 Presidency of Indonesia. The meeting of KADIN delegates with KEIDANREN (Japan Business Federation) is important for bilateral cooperation between the two countries, considering KEDAINREN's position as an economic organization with more than 1400 Japanese companies as members, and representing 108 industry associations and 47 prefectures. KEDAINREN focuses on efforts to improve sustainable development through collaboration with business actors from various countries. The meeting focused on discussing the alignment of policy recommendations that have been formulated by the B20 Task Forces and Action Council, especially for priority topics that were also legacy in 2016. Namely: digitalization, trade and investment, energy transition, sustainable projects, and climate change.

 

Support for B20 Indonesia

On the occasion at the forum with JETRO, Chair of B20 Indonesia Shinta Kamdani said the B20 Indonesia forum could support the priority agendas of the two countries to encourage a more resilient global economic transformation through the B20 Indonesia forum.

 

According to Shinta, Japan has so far contributed greatly to Indonesia's economic development, especially in the growth of energy infrastructure in Indonesia. Such as the construction of an 11,000MW electric power facility which contributes to 20 percent of Indonesia's national electricity needs. In addition, the Indonesia-Japan cooperation is useful in accelerating the joint development of technologies that utilize renewable energy resources in Indonesia to accelerate the achievement of Indonesia's energy transition process. 

 

“On this occasion, we offer an opportunity for Japanese business leaders, especially those facilitated by JETRO, to collaborate and attend the B20 Indonesia Summit which will be held in November 2022, in Bali. We are optimistic that Japan has a strategic position to support the B20 theme, namely Embracing Collaborative Recovery and Growth, Boosting an Innovative Global Economy and Forging an Inclusive and Sustainable Future," said Shinta.  

 

Regarding the issue of energy transition and climate change, Shinta considers that there are two that Indonesian B20 legacies have great potential for investment cooperation. First, The Carbon Center of Excellence which is a hub for carbon trading through a knowledge center and sharing best practices. Second, B20 Wiki, a platform that aims to increase MSMEs to be able to penetrate the global supply chain and enable MSME capacity building to enter the global market.

 

Shinta explained the results of the recommendations that had been prepared by B20 Indonesia, emphasizing the policy recommendations of the three Task Forces that were closely related to the legacy produced by B20 Japan. Namely the Trade and Investment Task Force, Energy, Sustainability, and Climate Task Force and the Digitalization Task Force.

 

“Trade and investment can only fully recover if we promote collaborative recovery and growth efforts. Sustainability is an important issue that is being pushed through B20 Indonesia. One of them is through Energy, Sustainability, and Climate Task Force which we believe can encourage increased global cooperation in accelerating the energy transition and ensuring the implementation of a just, orderly and affordable energy between developing and developed countries. ” added Shinta. 

 

Japan is believed to be able to expedite the energy transition in Indonesia through bilateral cooperation that contributes to the energy sector, support for policy formulation, development of human resources to facilitate the transfer of energy transition-related knowledge and technology, and contribution to the energy sector.

 

Meanwhile, related to the Trade and Investment Task Force, among others, formulating several policy recommendations to encourage open, fair and efficient global trade, as well as multilateral investment governance, including reforms from the WTO. Meanwhile, the policy recommendations of the Digitalization Task Force are related to the development of adequate infrastructure, encouraging transaction security, and encouraging the readiness of MSMEs related to digital literacy and skills, as well as promoting risk-based cyber security standards.

 

Strengthening Bilateral Partnership 

Japan is one of the most important economic partners for Indonesia. Economic relations between the two countries have been going on for decades. Next year, the two countries will celebrate 65 years of diplomatic relations. Data for 2020, the value of Japanese investment in Indonesia is in position 4 with an investment value of US $ 6 billion and is predicted to continue to increase every year. 

 

Chairman of the Indonesian Chamber of Commerce and Industry Arsjad Rasjid said the business forum of the two countries is a series of B20 Indonesia initiated by the Indonesian Chamber of Commerce and Industry as well as a form of commitment to the Indonesian business community to continue to support government programs. Especially those related to future economic growth that is more resilient, inclusive and innovative.

 

“Indonesian Chamber of Commerce and Industry wants to strengthen business relations and economic partnership opportunities with the Japanese business community. Indonesia, with the majority of the population being of productive age, has the skills and abilities to help meet the labor shortage in Japan in various business sectors. One of the policy reforms that Indonesia has carried out is through the Omnibus Law, making Indonesia very friendly for investment and we want Japan to be able to collaborate with Indonesia for cooperation opportunities related to digitalization and energy transition," said Arsjad. 

 

Arsjad added, KADIN Indonesia and KEIDANREN have a longstanding relationship in building and connecting the businesses of the two countries, especially regarding the bilateral relationship between Indonesia - the Japan Economic Partnership Agreement (IJEPA) since 2018 and will be renewed at the G20 Summit. In line with that, Arsjad expressed the need to form a working group to bridge the two countries, particularly in identifying which sectors can be explored more deeply through the cooperative relationship between Indonesia and Japan.

 

“Other cooperation will also be strengthened related to the Regional Comprehensive Economic Partnership (RCEP) which is expected to be completed in August 2022. This marks our commitment to the principle of multilateral trade that is open, fair, and beneficial to all parties. More importantly, it provides new hope and optimism for the post-pandemic economic recovery in the ASEAN region," said Arsjad.

 

Arsjad hopes that this meeting with KEIDANREN can encourage investment and economic growth of the two countries, especially related to 3 strategic sectors, namely digital infrastructure, energy transition and the electric vehicle ecosystem. KADIN, continued Arsjad, is ready to facilitate and assist investment in the growing Indonesian market to ensure it becomes a mutually beneficial partnership.

 

This meeting was held with the support of PT Astra International Tbk, PT Bayan Resources Tbk, PT Indika Energy Tbk and Sinar Mas.