By: Defiyan Cori
Constitutional Economist
(Alumnus of Japan Friendship Programme Participant cooperation amongst Indonesia and JICA,1994)

Why Indonesia and Japan cooperation is an important thing, this is an answer to get in response carefully. Because, there are a long journey history and economic intention both of country. Eventhough, for the facing up of the 21’st century that needed cooperation and collaboration in economy and industrial sector. As a leader of developed countrie’s member on G20 Indonesia is committed to developing the energy transition mechanism (ETM). Beside that, for the last five years economic growth of Japan declined strightly.

On 2023, Japan’s GDP grew by 0.1% (quarter to quarter/qoq) in quarter 4 (Q4), compared with flash data of a 0.1% fall and a 0.8% contraction in Q3. The economy narrowly escaped a recession as markets expected a 0.3% rise, helped by a strong upward revision of capital expenditure (2.0% vs the preliminary print and Q3 figure of a 0.1% fall, and market consensus of a 2.5% rise). Also, net trade contributed positively (0.2 percentage points, unchanged from the flash print), with exports (2.6% vs 0.9% in Q2) growing stronger than imports (1.7% vs 1.0%). This data show that Japan’s economic not in normal performance and need to evaluation seriously by goverment authority.

Meanwhile, private consumption, which accounts for about 60% of the economy, shrank for the third straight quarter (-0.3% vs the initial reading of a 0.2% drop and after a 0.3% fall in Q3), due to elevated cost pressure and persistent headwinds at home. The other indicator also show badly, government spending fell more than initially anticipated (-0.2% vs -0.1% in flash data, after a 0.3% rise in Q3), as did public investment (-0.8% vs -0.7% in the first estimate and after a 1.0% decrease in Q3).

Economic growth of many developed countries that joined on the Group Twenty (G20) grew more slowly and threatened the economic crisis permanently. In Asia, economic growth of Japan was in contraction and the value of Growth Domestic Bruto (GDP) only US$4,2 trillion. Japan’s rank on G20 also overtaken by the People’s Republic of China (PRC) which number two position now. This condition have been taken pay attention by government cabinet committe on February 2024.

Vice versa, Indonesian economic growth still exist on 4-5 percent per year in average and gain 5,04 in 2023 (yoy). This is indicated that economic authority able to handle the impact of declining global economy, especially in USA and Europe. In many issues, the cooperation and collobaration amongst Japang and Indonesia is more needed, especially on food, energy and water subject. Japan had many projects on that subject in Indonesia funded by Japan Bank for Internasional Cooperation (JBIC) and Japan Indonesia Cooperation Agency (JICA).

Indeed, Japan’s industrialized, free market economy is the fourth biggest in the world. Japan has the largest electronics industry and the third largest automobile industry in the world. Japan’s economy is well-known by its efficiency and competitiveness in exports oriented sectors, but productivity is lower in areas such as agriculture, distribution, and services. But, Indonesia is a potensial market and have many resources will be contribute to help Japan’s economy growth increasing again. That’s why, cooperation and colaboration both of country will be needed to strengthening the regional economy growth of Asia and eventhough Asean.[•]^