Co-creating the Future of the Indo-Pacific Based on Trust
Ahead of the Commemorative Summit for the 50th Year of ASEAN-Japan Friendship and Cooperation held in Japan in December 2023, Prime Minister of Japan, KISHIDA Fumio wrote a piece on Kompas on the Japan and ASEAN’s collaboration for ASEAN region development.
Japan initiated dialogue with ASEAN in 1973, ahead of the rest of the world. Since then, Japan has walked alongside ASEAN including Indonesia on its path of development and integration. Japan has supported the development of the ASEAN region through development cooperation in various fields. Japan and ASEAN are each other’s major trading partners, and Japan is the second largest direct investor in ASEAN after the United States. In recent years, Japanese direct investment in ASEAN has averaged about 2.8 trillion yen annually. Japanese companies have approximately 15,000 business establishments in ASEAN, bringing the vitality of the fast-growing ASEAN region into the Japanese economy and also creating products, services and employment in ASEAN countries, thus contributing to their economic development. Turning attention to Indonesia, there are around 2,000 Japanese companies are operating in Indonesia. They have created jobs for 7.2 million of Indonesian people and have produced 8.5% of Indonesia’s GDP and 25% of its imports. Japan is also the second largest direct investor in Indonesia on a cumulative basis. The two countries have built very close economic relations for more than 50 years including through the aforementioned private economic activities.
