Indonesia, Japan to include energy deal in EPA

Indonesia and Japan plan to include a deal that Indonesia will ensure stable energy supply to Japan, when the two nations reach an outline of a bilateral economic partnership agreement (EPA) in late November, Japanese officials said Friday.

The energy deal is eyed in exchange for more investment from Japan in oil and natural gas-development projects in Indonesia,Agency reported.

It will be the first time that Tokyo has reached an economic partnership agreement with another country that would include a clause to ensure stable energy supply to Japan, the officials said, after wrapping up a four-day meeting in the Japanese capital with Indonesian negotiators.

According to the Japanese officials, the two countries will "speed up" talks on some sticking points in goods and services trade liberalization, Agency said, as well as in investment, deregulation and intellectual property right rules, before striking an EPA outline upon a visit to Japan by Indonesian President Susilo Bambang Yudhoyono, slated for late November.

Seeing Indonesia as a key supplier of energy and natural resources, Japan depends on Indonesia for 27.6% of its natural gas imports and for 3.5% of its crude oil imports. (*)