Japan urges Indonesia, ASEAN to address trade imbalances

15 hours ago

Jakarta (ANTARA) – Japan has urged Indonesia and other ASEAN countries to cooperate in addressing trade and industrial imbalances as intensifying regional competition reshapes Asia’s economic landscape.

Japan’s Ambassador to ASEAN Yonetani Koji said that growing competition was creating significant disparities in trade and industrial development, requiring joint efforts to address them.

“When we look at the intensifying regional competition surrounding the region, it is important to remember that this enhanced competition is creating a huge imbalance,” Yonetani told ANTARA for the International Corner program in Jakarta on Thursday.

He said changes were needed to correct widening disparities caused by regional competition, urging Indonesia and other ASEAN members to deepen discussions on ways to improve the situation.

“It is important that Japan and Indonesia, as well as other ASEAN countries, try to work together to further deepen our discussion on addressing imbalances”, he said.

Yonetani also highlighted the contribution Japan can make to Indonesia and ASEAN amid intensifying economic competition across the region.

Japan’s role extends beyond investment to human-capacity development, sustainable business practices, respect for social values, environmental protection, labor conditions and human rights, he said.

“Japan has the tradition to respect social values in business processes,” Yonetani said, adding that Japanese companies can support more balanced and sustainable long-term development.

More balanced and sustainable development should form part of regional efforts to respond to changes in the economic environment, Yonetani said.

Beyond trade and industrial development, he stressed ASEAN’s role in preserving an open, rules-based economic system amid rising protectionism and economic fragmentation.

ASEAN has a fundamental role and has consistently demonstrated its capacity to uphold principles including a multilateral, open and rules-based economic framework, he said.

“I believe that ASEAN’s role is essential,” Yonetani said, adding that the bloc has repeatedly demonstrated its ability to uphold those fundamental principles.

Japan ranked among ASEAN’s top 10 trading partners in 2024, with two-way trade reaching US$236.4 billion and Japanese FDI flows totaling US$17.5 billion, making Japan ASEAN’s fourth-largest trading partner and fifth-largest FDI source.