Exporting and Importing for SMEs are not easy, especially for the first timers. The process may be seen complicated, expensive, and time consuming. However, Japan and Indonesia has committed in creating a partnership that will encourage Indonesian products to compete in a larger market.

Indonesia-Japan Economic Partnership Agreement (IJEPA)

IJEPA is the first bilateral FTA with more than 90% of the tariffs liberated. It was first signed in 20 August 2007 and implemented at 1 July 2008. The current status of IJEPA is in negotiation of protocol changes.

IJEPA covers improvement of business environment, intellectual property, energy and mineral resources, investment cooperation, government procurement, movement of labor, custom procedures, and trade in goods and services.

How do SMEs utilize IJEPA? The pandemic has encouraged SMEs to be more creative and explore new markets in through preferred tariffs and capacity building programs. Preferred tariffs means that some preferred products when entering Japan are free from import duty.

Total trade of Indonesia and Japan 2019 – 2022 in US$:

Trading Surplus of Indonesia and Japan 2019 – 2022 in US$

Exporting and Importing to Japan has key sectors and strategic commodities:

• Automotive
• Horticulture
• Forestry
• Oil palms
• Maritime and Fishery

Here is another list of top 10 commodities most potential for Indonesia in Japan:

Export

1. Fuel oil (HS27)
2. Metal (HS26)
3. Electric Equipment (HS85)
4. Jewelry (HS71)
5. Rubber (HS40)
6. Nickel (HS75)
7. Wood (HS44)
8. Machinery (HS84)
9. Vehicles and spare parts (HS87)
10. Plastic (HS39)

Import

1. Machinery (HS84)
2. Iron and Steel (HS72)
3. Vehicles and spare parts (HS87)
4. Electric Equipment (HS85)
5. Plastic (HS39)
6. Rubber (HS40)
7. Items from Iron and Steel (HS73)
8. Chemical Products (HS38)
9. Organic Chemicals (HS29)
10. Cooper (HS74)

Source: KBRI Tokyo. (2022). Ekspor-Impor Indonesia-Jepang. JAIPONG. https://www.dashboard.kbritokyo.jp/ekspor-impor