Blueprint for Next Era of ASEAN-Japan Economic Ties in the Works

Jakarta. A blueprint that sets the future direction of the ASEAN-Japan economic partnership for the next decades is currently in the works, according to a Japanese envoy.
ASEAN and Japan are entering their 50th year of relations this year. However, their relationship has dramatically changed over the past decades. Not to mention the common challenges that both sides face, including the Covid-19 pandemic and the food and energy security risks that ensued from the protracted Russia-Ukraine war. Today, Japan is pushing for ASEAN to “co-create” a vision that can redefine their economic ties for the coming decades.
“Simply put, Japan has always been with ASEAN to overcome challenges, and will always be,” Kiya Masahiko, the Japanese Ambassador to ASEAN, told the 2023 ASEAN Youth Economic Forum in Jakarta on Friday.
“The Japanese public and private sectors have gotten together to make a working draft to lay out the vision of our future cooperation. But this initiative can only be completed with active engagement of the ASEAN side,” Masahiko said.
An interim note of this blueprint —the ASEAN-Japan Economic Co-Creation Vision— writes that Japan had supported ASEAN's industrialization and economic development. However, Japan today is facing economic stagnation and an aging population. ASEAN, on the other hand, is flourishing into an economic growth center, and now has other countries like China and South Korea actively investing in the region.
This co-creation vision will also encompass four pillars of action, among others, promoting open innovation beyond borders.
Read More: ASEAN Seeks Single Window Expansion with Japan for Greater Trade
On the sidelines of the forum, Ryosuke Fujioka, the chief representative at the ASEAN-Japan Economic and Industrial Cooperation Committee (AMEICC), told reporters “we need a lot of inputs from the ASEAN side to think about our future together. The keyword is ‘co-creation’.”
Fujioka defined the ASEAN-Japan trade pattern as “somewhat unique”.
“Many Japanese firms are investing in ASEAN. It is true that we are trading goods, but some Japanese firms are producing the final product in this region. Collaborating with dialogue partners is important because the final market is outside ASEAN and Japan. That is the unique characteristic of the ASEAN-Japan trade and investment partnership,” Fujioka said.
According to Fujioka, the 2023 ASEAN Youth Economic Forum gives a chance for Southeast Asian youths to give their input into this vision with discussions focusing on the circular economy. The forum even had youth participants from Timor Leste, whom the group has admitted as its eleventh member in principle.
Kao Kim Hourn, the secretary-general of ASEAN, not long ago revealed that the Southeast Asian group posted $240.2 billion in trade volume with Japan in 2021, up by 17.2 percent year-on-year. Japan is also ASEAN’s fourth-largest investor. Direct investment from Japan in ASEAN rose 3.5 percent y-o-y to $12 billion in 2021.
Japan’s bilateral trade with ASEAN chair Indonesia is also on the rise.
The government reported that Indonesia-Japan trade stood at $42 billion last year, up from $32.5 billion in 2021. Japan was also the fourth largest source of investment in Indonesia in 2022, reaching $3.56 billion.
Read More: Indonesia Wants Japan to Conclude Revised IJEPA Talks
Tags: Keywords:Related Articles
The Best Deal with Trump is No Deal
Trump’s portrayal of China, Japan, S. Korea, India, and ASEAN as job thieves is misleading and distorts economic reality.ASEAN, Gulf Nations Get Closer as Trade Hits $130.7 Billion
Gulf Cooperation Council (GCC) wants its trade with ASEAN to reach $180 billion by 2032.It Can Be Hard for ASEAN to Set Common Negotiation Plan on US Tariffs
An economist says that each ASEAN member is at a different stage of development, making a common US tariff negotiation plan impossible.Unleashing Borneo’s Potential: Will Indonesia Step Up?
Often overlooked, Borneo is ASEAN’s biggest elephant in the room of regional growth.Malaysia’s Anwar, Prabowo Meet over Collective ASEAN Response to Trump Tariff
The US will soon start charging Indonesian imports 32 percent tariffs, while also slapping a 24 percent duty on Malaysian goods.Indonesia Sends $1.2 Million Humanitarian Aid to Quake-Hit Myanmar
Indonesia's 124-ton relief for quake-hit Myanmar mainly encompasses shelters, medical equipment, and medicines.Foreign Tourists Prefer Other ASEAN Countries than Indonesia: Association
The number of foreigners visiting Indonesia is even less than half of what fellow ASEAN member Thailand recorded in 2024.Vietnam's Party Head Wants ASEAN to Be Global Production Hub
Vietnam's party leader To Lam says that ASEAN is also on track to be the world's fourth-largest economy by 2030.Navigating the Stormier Weather
While a second Trump presidency could create global trade disruptions, Indonesia can thrive by strengthening regional partnerships.Prabowo to Meet Anwar Ibrahim in Malaysia, Again
This would be the second time for President Prabowo Subianto to meet Malaysian Prime Minister Anwar Ibrahim this month.The Latest
Indonesia Introduces AI and Coding to 59,000 Schools Nationwide
Indonesia rolls out AI and coding as elective subjects in 59,000 schools, aiming to prepare students for the digital future."I Realized I Was Alive": Survivor Speaks After Air India Dreamliner Crash
A lone survivor recounts escaping the Air India crash that killed 241 people. Investigators recover the black box as probe intensifies.Dental Issues Top List in Indonesia’s Mass Health Screenings, Minister Says
Indonesia’s free health check program finds dental issues most common, ahead of hypertension, diabetes, and obesity, health minister says.AVC Nations Cup: Indonesia Defeats Hong Kong, Eyes Top-Five Finish
Indonesia’s women’s volleyball team beat Hong Kong 3-1 at the AVC Nations Cup in Hanoi to advance in the battle for fifth place.Bali, Jakarta Explore $20B Subway Collaboration to Ease Island Traffic
Bali and Jakarta officials met to discuss plans for the island’s first MRT system, with underground tracks proposed to respect local customsMost Popular
