"The key will be on how fast the Japanese government will implement the reconstruction phase."
Jakarta (ANTARA News) - Japan`s post-disaster economy predicted would not affect the Indonesian economy despite the many aspects interrelated between the two countries` economies, an observer has said.

"The condition of Japan at the moment won?t bring big impacts on the Indonesian economy. I`m sure the growth target of 6.3 percent will remain achievable," said Latif Adam, an economic researcher with the Indonesian Institute of Science (LIPI), here, on Wednesday.

Responding to questions in an interview with ANTARA News, Adam added that Japan is the third largest investor in Indonesia so that this country would not put aside its interests over its investments overseas, while taking priorities on the recovery of its national economy back home after the natural disaster last week.

"Indonesia`s export to Japan will somehow decline as will the import yet the conditions will only be of temporary in nature and won`t be long," Adam said of the possible impacts on the Indonesian of the Japan`s domestic conditions after the 9-magnitude earthquake and the ensuing tsunami hit the eastern coastal areas of the country last Friday (March 11).

Adam explained that the Japanese markets will consume less of the Indonesian export after the disaster as will the export from this country to Indonesia because of the devastated industrial areas of Japan will also stop production.

He said that Japan in the next two months will concentrate on giving emergency response for the smashed areas but after two months or so the Japanese government would soon carry out the reconstruction phase.

"The key will be on how fast the Japanese government will implement the reconstruction phase. There`ll also opportunities for Indonesia to export to the country," he said.

Japan is Indonesia`s main export destination with a export value of 16.49 billion US dollars in 2010, a 37 percent increase compared to 2009 of 11.8 billion dollars.

Indonesian import was 15.32 billion dollars in 2010, a sharp increase of 75 percent compared to 9.8 billion dollars in 2009.
(Uu.KR-VFT/HAJM/O001)

Editor: Priyambodo RH
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