Newsletter No. 167
January 21, 2006

 

INDONESIAN VICE-PRESIDENT KALLA IS COMING TO TOKYO

There have been several notable developments in Japan-Indonesia relations that have just been announced or reported.

Firstly, MOFA has announced that H. Muhammad Jusuf Kalla, Chairman and Vice-President of the Golkar Party, will make a visit to Tokyo from January 22nd to 26th. Although the specific purpose of the visit is not yet clear, Kalla is expected to meet with Prime Minister Koizumi and Foreign Minister Taro Aso, among others.

Meanwhile, the Jakarta Post is reporting that Japan has announced that a total of $US 1 billion in loans have been earmarked by the Japanese government for the benefit of Indonesian development. These government-to-government loans -- offered at special terms -- will be used for nine projects in the infrastructure, human resources development, and poverty-reduction sectors. Precisely which nine projects these will be is yet to be announced since they are still under negotiation.

In business news, the Jakarta Post also noted that Indonesia is the top exporter of plywood to Japan, although the 2005 numbers were down by about 25%. However, overall the outlook for Japan-Indonesia trade is very good for 2006, with substantial growth expected by analysts. Japan is currently the number three foreign investor in Indonesia after Singapore and the UK.