Jakarta (VNA) - Indonesia and Japan continue to further intensify comprehensive economic cooperation, especially in the industrial sector, and the synergy between the two countries is expected to have a positive impact on stimulating business enthusiasm amid the ongoing COVID-19 pandemic.

Japan is one of Indonesia’s strategic partners, Minister of Industry Agus Gumiwang Kartasasmita said on March 1, adding that bilateral trade excluding oil and gas sector grew at a pace of 5.06 percent during the 2014-2019 period.

Japanese investment totalled 4.31 billion USD in 2019 and 2.58 billion USD last year.

The Toyota Group has expressed an interest in injecting 2 billion USD into Indonesia and is committed to supporting the Indonesian Government’s efforts to reduce carbon emissions by producing hybrid and electric cars.

Of seven multinational corporations planning to relocate factories from China to Indonesia, three are three Japanese firms: Panasonic Manufacturing (worth 30 million USD), Denso (138 million USD), and Sagami Indonesia (50 million USD).

Indonesia and Japan agreed to cooperate in developing the industrial sector through the New Manufacturing Industry Development Center (New MIDEC), said Eko SA Cahyanto, Director General of Resilience, Territory and International Industrial Access (KPAII) at the Ministry of Industry.

The programme contains a framework for cooperation projects covering six strategic sectors: automotive, electronics, chemicals, textiles and garments, food and beverages, and metals.

Japanese Ambassador to Indonesia Kanasugi Kenji said Japan encourages its firms to invest in Indonesia.

The two have strong historical ties, he went on. With around 2,000 Japanese companies in Indonesia, Japan has contributed greatly to its economy through job creation and export expansion, he said.

A survey by the Japan External Trade Organisation (JETRO) found that around 65.1 percent of Japanese companies in Indonesia forecast they would earn a profit in 2021 as they expect rising sales in the domestic market and expanded export markets./.