Indonesia’s gross fixed capital formation (PMTB) has grown by 7.54 percent year on year in the second quarter of 2021.
Jakarta (ANTARA) - Indonesia and Japan’s cooperation as strategic partners will continue despite the global threat posed by the COVID-19 pandemic, Coordinating Minister for Economic Affairs Airlangga Hartarto has said. "I believe our cooperation value will increase, driven by the Indonesia-Japan Economic Partnership Agreement and the Regional Comprehensive Economic Partnership," he stated at an online event organized by the Indonesia-Japan Business Network (IJBNET) on Tuesday.

The minister said he expects the value of the bilateral trade between Indonesia and Japan to reach US$24.3 billion in 2021.

From 2018 to 2020, Japan consistently ranked third among Indonesia's main export destinations, with exports to the country valued at US$13.6 billion in 2020, he pointed out.

Indonesia's exports to Japan reached US$7.9 billion in the first half of 2021, he added.

Meanwhile, Indonesia pulled in investments to the tune of US$12.9 billion from Japan through more than 19 thousand projects between 2018 and the first half of 2021, Hartarto noted. Japan also became the third largest foreign investor in Indonesia, the minister informed.

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In the first half of 2021, foreign investment from Japan reached US$1.04 billion, he said. The Indonesian government is hoping to attract more investments compared to 2020, when they were recorded at US$2.6 billion, he added.

“The improvement of the Indonesian economy has had a positive impact on the investment sector. Indonesia’s gross fixed capital formation (PMTB) has grown by 7.54 percent year on year in the second quarter of 2021," he said.

Furthermore, the rise in investment has been driven by the relocation of factories by three Japanese companies to Indonesia, he added.

He then congratulated the association for its third anniversary, saying: “Hopefully, IJBNET can continue to carry out Indonesia-Japan business cooperation to improve the economic growth and welfare of the two countries."

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Translator: Kuntum Riswan, Uyu Liman
Editor: Fardah Assegaf
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