Tuesday, March 15, 2011

How Seriously Japan's Disaster Struck Indonesia's Business




(News Today) - Tsunami and earthquake disasters stricking north Japan on March. 11 are likely to distract Japanese Government's focus from fostering further economic cooperation negotiations with Indonesia. One of them that will possibly be put on hold is an initial session on main plan of Metropolitan Priority Area (MPA) that is highly supported by Japan.

"It was scheduled to have a kick-off meeting of MPA on March.17, but there would be a postponement for sure. We can understand it very well as we take the massive disasters into our great concern. We believe they will put their priorities on disaster reliefs. I have not made any contact with Japanese Govt but I can get it if the plan will be delayed," said Minister Coordinator for Economic Affairs, Hatta Rajasa, in Jakarta, on Saturday.

MPA was set by Indonesia and Japan to develop the tremendously competitive urban cities. The main plan will be extended into the development of transportations, industries districts, electricity generators, ports, airports, and smart cities.

It is the follow-up of establishment of the memorandum of understanding between Hatta Rajasa and Japanese Foreign Minister Seiji Maehara on MPA in Nusa Dua, Bali, on Dec.10, 2010. The MOU was scheduled to be implemented on March 17, 2011.

Hatta hoped that the disasters would not bring any serious impact on the bilateral trade between the two countries. "The bilateral trade is the biggest one as its volume is over 20 billion US dollar. I think the export of Indonesia and Japan will hopefully not be in risk."

Japan is one of the Indonesia's main importers. Non-oil and gas imports from Japan to Indonesia hit 16.910 billion US dollar at the end of 2010 while its imports at the end of January 2011 hit 1.379 billion US dollar.

Source : kompas

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