Japan proposes text on resources cooperation with Indonesia for FTA

Japan and Indonesia wrapped up their fourth round of official negotiations on a bilateral free trade agreement in Tokyo on Friday, with Japan proposing for the first time a draft clause in the FTA which calls for bilateral cooperation on resources, Japanese officials said as quoted by Kyodo News.

Under the proposed clause, Indonesia would provide Japan with stable supply of resources such as natural gas and oil, while Japan would provide technological cooperation on resources development, the officials said.

During previous talks, Japan asked Indonesia to improve its investment climate for energy projects and create a framework for stable energy supply to Japan.

Indonesia is a major provider of energy to Japan, which seeks to maintain access to the country's oil, natural gas and other resources.

According to the officials, Tokyo and Jakarta are scheduled to hold experts' meetings in Jakarta in June to discuss issues such as Japan's proposal, after which they will decide on the date of their next round of talks with a view to reaching a basic accord by the summer as planned.

The two countries launched the free trade talks in July last year with the aim of finishing the process in less than two years. They have basically agreed to hold official FTA talks every two months.(*)