Home Blog How Can Indonesia Prosper From the Japan-ASEAN Partnership? Business Licenses | Indonesia | Product Registration How Can Indonesia Prosper From the Japan-ASEAN Partnership? InCorp Editorial Team 2 July 2025 5 minutes reading time Table of Contents The Importance of ASEAN-Japan Partnerships Recent ASEAN-Japan Partnership Commitment The Potential Benefits for Indonesia The Potential Challenges Streamline Your Business Operations with InCorp ASEAN partnerships with countries worldwide has become a cornerstone of regional collaboration, fostering economic prosperity and strategic alliances. The Japan-ASEAN partnership is one of the major reasons why Asia is strengthening their economic foothold in the world. Explore the dynamic landscape of the Japan-ASEAN partnership, particularly as it pertains to Indonesia, to unveil a realm of boundless opportunities and mutual growth. The Importance of ASEAN-Japan Partnerships For Japan, the Association of Southeast Asian Nations (ASEAN) is not only strategically important due to its crucial sea routes and valuable resources. t also holds significant relevance in Japan’s “Free and Open Indo-Pacific” (FOIP) strategy. Furthermore, the strategy is now deemed valuable, especially given the escalating competition between the United States (US) and China. Therefore, Japan is recommending strengthening its ties with ASEAN and its member nations. Historical Background of the Japan-ASEAN The year 2023 marks the 50th anniversary of the Japan-ASEAN friendship and cooperation. The first relationship began in 1973 with the establishment of the Japan-ASEAN Synthetic Rubber Forum. Over the years, ASEAN and Japan have collaborated for the mutual goals of peace, stability, development, and prosperity in the Asian region. They have also forged a strong business partnership. Japan recognizes the importance of a cohesive ASEAN. Japan perceives ASEAN is serving as a central hub for regional cooperation. Therefore, the existence is vital for the well-being of Japan, ASEAN, and the entire East Asian region. ASEAN Exports to Japan ASEAN’s exports to Japan in 2020 amounted to USD 102.74 billion, while in 2021, they reached USD 113.87 billion, marking a 10.83% increase. A substantial portion of the goods exported from ASEAN countries to Japan consists of electronic machinery and accessories, totaling USD 27.11 billion in 2021. Furthermore, among ASEAN’s top 10 trading partners, the highest export destination is undoubtedly within ASEAN itself, with exports valued at USD 370.92 billion in 2021, or approximately IDR 5,660.24 trillion. This figure represents a significant increase of 24.42% compared to 2020. Recent ASEAN-Japan Partnership Commitment During the ASEAN meeting with Japan held on September 7, 2023, the country leaders formally agreed to establish a Comprehensive Strategic Partnership between ASEAN and Japan. This alliance is part of the Joint Statement on establishing the ASEAN-Japan Comprehensive Strategic Partnership. Moreover, the forum also formulated three essential documents: Progress Report of the Revised Implementation Plan of the Vision Statement on ASEAN-Japan Friendship and Cooperation, containing updates on how the Vision Statement on ASEAN-Japan Friendship and Cooperation is implemented. Future Design and Action Plan of an Innovative and Sustainable ASEAN-Japan Economic Partnership, outlining a 10-year plan for cyber connectivity, human resource development, and innovation. ASEAN-Japan Economic Co-Creation Vision, presenting a vision for economic collaboration between ASEAN and Japan involving the private sector, business communities, and academics. The Potential Benefits for Indonesia As a member of ASEAN, Indonesia has actively participated in economic cooperation within the region. This cooperation has brought several advantages to the Indonesian people, such as: 1. Market Expansion ASEAN cooperation broadens Indonesia’s market reach within member nations, facilitating exports of goods and services to neighboring countries benefiting businesses of all sizes. 2. Economic Growth ASEAN collaboration stimulates Indonesia’s economic growth through increased trade and investment. The ASEAN Economic Community (AEC) fosters a single market and integrated production, attracting foreign investment that drives infrastructure development, job creation, and economic growth. 3. Tech and Knowledge Sharing ASEAN economic cooperation promotes technology and knowledge exchange, granting Indonesia access to the latest innovations and improving workforce skills, boosting competitiveness regionally and internationally. 4. Enhanced Well-Being ASEAN economic cooperation aims to improve people’s lives by creating jobs, increasing incomes, benefiting related industries like tourism, transportation, and services, and fostering regional economic growth. 5. Policy Alignment ASEAN economic collaboration harmonizes policies and standards, simplifying trade agreements, removing barriers, and standardizing products, making it easier for Indonesian goods to access ASEAN markets and providing investors with legal certainty. READ MORE:A Closer Look at Indonesia-Japan Relations The Potential Challenges Albeit the opportunities, some potential challenges come from ASEAN-Japan partnerships that might affect Indonesia’s business landscape: 1. Challenges to Stability The shifting power dynamics and increasing strategic competition between the US and China have threatened both ASEAN and Japan. 2. Japan’s Alliance with the US The intensifying US-China competition affects Japan’s relationship with China despite economic interdependence. This is primarily due to Japan’s core defense and foreign policy strategies revolving around its alliance with the US. The 2022 National Security Strategy prioritizes cooperation with the US for long-term regional peace and security. 3. ASEAN and China ASEAN’s role and centrality are affected by China’s assertive actions in the South China Sea that disrupt the rules-based maritime order in the region. The emergence of multilateral coalitions like the Quad and AUKUS diminishes ASEAN’s significance in regional stability. In general, both ASEAN and Japan are navigating the complexities of the evolving US-China competition while maintaining economic interdependence with both powers. Guide to Doing Business in Jakarta Mailchimp Free eBook Indonesia Business Insight Newsletter Full NameEmail I have read InCorp's Privacy Policy and agree to InCorp using my information provided to contact me about related content, and services.*Subscribe Streamline Your Business Operations with InCorp The longstanding partnership between ASEAN and Japan has provided numerous opportunities for Indonesia, spanning from market expansion to technology transfer. Their recent commitment to partnerships also highlights valuable business opportunities worth exploring. To streamline their operations in Indonesia, businesses that capitalize on this momentum can turn to InCorp Indonesia (an Ascentium Company) for product registration and business license services. Read Full Bio Verified by Hotdo Nauli Senior Legal & Delivery Manager at InCorp Indonesia Hotdo heads the Legal and Delivery team at InCorp Indonesia, managing Product Registration, Legal Advisory, and Business Licensing. With over 8 years of experience, she focuses on compliance and integrity, ensuring all client operations align with Indonesian laws and regulatory standards, including contract reviews and sector-specific licenses. She is also a licensed advocate and a member of the Indonesian Advocates Association (PERADI). Frequently Asked Questions What are the regulations on product distribution in Indonesia? You will need to register your products with the BPOM (National Agency of Food and Drugs) and MoH (Ministry of Health) before you can distribute them in Indonesia. It can only be registered with an Indonesian legal entity. Your local distributor will register your product in Indonesia under their entity and become the license holder if you distribute via the entity you choose. Is halal registration required for all products in Indonesia? Under the latest regulations on Halal Product Assurance, the mandatory requirement for halal certification has been expanded to encompass a wide range of consumer products in Indonesia. This change, which was previously voluntary, now dictates that various items must obtain halal certification. Initially, the certification focus has been on food and beverage products, with the deadline for compliance set for October 17, 2024 What requirements are needed if my Indonesian company registers the product? Register the product with BPOM (National Agency of Food and Drugs) and MoH (Ministry of Health). The type of testing and document requirements depend on the type of product you want to register. Also, the time frame for registration could vary between 3 to 15 months. Do all the products sold in Indonesia need to be halal registered? According to the latest provision regarding Halal Product Assurance, halal certification for many consumer products in Indonesia that was previously voluntary has now been mandatory. Food and beverage products are the first Halal certified before 17 October 2024. Get in touch with us. 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