Indonesia likely to be the loser in Japan agreement

Speaking at a discussion hosted by the Institute for Global Justice in Jakarta on Thursday, the analysts said Indonesia would derive few benefits from the deal, even with its focus on capacity building.

"The government is bragging about bringing Japanese investment and production materials to be developed here. This only means that Japan is maintaining its supporting industries back home while eating out on the Indonesian market," said Utama Kajo, chairman of the public policy committee at the Indonesian Chamber of Commerce and Industry.

"This is really a stupid thing to do. The main trade issue with Japan is not tariffs, but non-tariff barriers. Furthermore, we will likely become more dependent on Japan," he said.

The economic partnership agreement (EPA) is basically a modified free trade arrangement aimed at providing mutual benefits for partners of unequal economic standing, according to a government statement.

Unlike Japan