Indonesia - Japan Economic Partnership Trade Agreement A Study on Japans Strategic Trade Policy in an EPA

Azkawening, Nanang Pamuji Mugasejati

2015 | Skripsi | Ilmu Hubungan Internasional

Abstract A more rigorous analysis compared to the one conducted in this research is needed in order to answer the above question. Nevertheless, this research is able to provide a tentative answer to the above question. The caveats on analyzing bilateral trade relations between Japan and Indonesia under Indonesia-Japan Economic Partnership Agreement are that 1) the adoption of cateris paribus, 2) the overview that looking only at markets of certain goods and not at the big picture of overall trading pattern, and 3) the assumption that both countries are behaving under the assumption of strategic trade policy concept. That is, in order to isolate Japan’s strategic trade policy over Indonesia on certain goods alone; that is, the goods Japan has comparative advantages and/or comparative disadvantages on in the trade relations with Indonesia. IJ-EPA is chosen to be the case of this research for it captures a trade relation between two Asian countries, one is an industrialized one and the other is a developing one. It also represents a trade relation in which a government is acting strategically with another government bilaterally. The trade between both countries has been complementary throughout history in addition to the good relations they have developed to come to a decision to establish a comprehensive bilateral trade partnership. It was an important step for Indonesia as this is its first encounter in bilateral partnership. For Japan this is another crucial step in securing its supply of commodities essential for its industries to keep operating as well as to sustain its market in Indonesia.

Kata Kunci : Indonesia - Ekonomi Jepang