Introduction:
In conjunction with the 39th Trade Expo Indonesia 2024, the ASEAN-Japan Centre (AJC) and the Ministry of Trade of Indonesia co-organized two seminars on 10 October 2024 in Jakarta, which were “The AJCEP Rules of Origin and Product-Specific Rules for Indonesia`s Fisheries Sector’’, and “The Digital Trade Transformation and Implementation of Digital Trade Platform between ASEAN and Japan’’ respectively.
Objectives and Goals:
The ASEAN-Japan Comprehensive Economic Partnership (AJCEP) Agreement offers a wide range of benefits to ASEAN countries including Indonesia, particularly in the fisheries sector, aiming to export their products to Japan. One of the key advantages of AJCEP is the elimination of tariffs on specific products, making seafood exports to Japan more competitive. The Centre`s seminar on “AJCEP Rules of Origin and Product-Specific Rules for Indonesia`s Fisheries Sector” was organized to raise awareness among Indonesian exporters on the advantage of AJCEP and how to navigate tariff commitments and product-specific rules under this agreement. In addition, it aims to give Indonesian seafood exporters more understanding with Japan`s stringent domestic regulations, including food safety standards and labelling requirements, especially how to comply with them, to ensure their competitiveness in the Japanese market.
While the development of a digital trade platform within the ASEAN-Japan framework holds immense potential on enhancing trade efficiency and transparency, the Centre also conducted a seminar on “The Digital Trade Transformation and Implementation of Digital Trade Platform between ASEAN and Japan”. It aims to enhance the participants understanding on the benefits and challenges related to establishing a robust legal basis and ensuring seamless interoperability across different national systems. Addressing these issues is crucial for realizing the full benefits of digital trade, such as reduced transaction costs and faster customs clearance, ultimately fostering greater economic integration in the region.
Activities and Highlights:
For the seminar on AJCEP, it underscored the critical importance of protecting a free, open, and rules-based trading system, especially under the ASEAN Outlook on the Indo-Pacific. In the current geopolitical climate, such frameworks are vital for ensuring market stability, fair competition, and sustainable growth. Speakers highlighted how Indonesia`s exporters can take advantage of AJCEP`s broader tariff line exemptions, especially for fisheries products, compared to other agreements. A key focus was on navigating the complexities of Rules of Origin (ROO) and Product Specific Rules (PSR) under regional agreements like the AJCEP.
The Marine Eco Label, which emphasizes ecosystem and resource sustainability, was presented as an increasingly significant environmental certification that can help Indonesian seafood exporters gain easier entry into international markets, especially in Japan, where consumers demand high standards of sustainability and freshness.
Under AJCEP, ASEAN seafood exports to Japan also benefit from reduced or eliminated tariffs, directly lowering export costs. Products like shrimp, squid, tuna, and crab from ASEAN countries can more easily compete in the Japanese market due to their improved price competitiveness. Additionally, streamlined export procedures and more efficient logistics ensure the timely delivery of fresh seafood without compromising quality – a crucial factor for Japanese consumers, who prioritize high-quality products. The seminar also introduced one Indonesia`s seafood exporting company, PT Suri Tani Pemuka, as a prime example of how local companies can leverage AJCEP and high standards to expand into international markets. With a strong emphasis on hygiene, safety, and product standardization, the company ensures that its products meet the strict demands of Japanese consumers.
Mr. Koichi FUJISAWA, from PT Suri Tani Pemuka, suggested Indonesian seafood exporters with necessary actions to get more profits, such as developing a variety of product categories, focusing on products` advantages such as healthy products, etc., and adding value to the products.
Key Takeaways:
- – AJCEP and the Marine Eco Label gives opportunities for Indonesian seafood businesses to compete in the global markets, particularly Japan.
- – By eliminating tariffs, simplifying export processes, and complying with the strict demands of Japanese consumers, Indonesia`s seafood sector holds tremendous potential to gain stronger positioning in the Japanese market.
For the second seminar on “Digital Trade Transformation”, it underscored the critical importance of seamless and rules-based digital trade. Indonesia`s INATRADE (an electronic system designed to facilitate the issuance of trade permits related to export and import activities to be processed online)and the ASEAN Single Window (ASW) are driving shifts towards paperless trade, reducing administrative burdens, and facilitating secure, cross-border exchange of trade documents. However, technical interoperability and regulatory alignment remain key challenges.
The seminar introduced Japan`s TradeWaltz platform demonstrated how blockchain technology can help unify government agencies, banks, and logistics providers, lowering costs, and boosting efficiency. Supported by METI`s digital trade agenda and Japan`s broader policy framework, this public-private collaboration aims to achieve a 10% digitalization ratio of trade transactions by FY2028.
Mr. Takahiro SATO, President and CEO of TradeWaltz Inc., operator of the trade information collaboration platform “TradeWaltzTM”. As the only platform in Japan to digitize trade procedures for commercial, logistics, and financial flows on the blockchain, TradeWaltz is collaborating with ASEAN countries to promote trade digitization efforts in line with the ASEAN-Japan Economic Co-Creation Vision.
The participants were informed that by integrating with ASEAN partners – through Memoranda of Understanding of TradeWaltz in Brunei, Singapore, Viet Nam, Thailand, and a pilot in Indonesia – TradeWaltz showed how digital trust ecosystems can strengthen supply chains and enhance trade resilience. Ultimately, such initiatives foster inclusive growth and preserve an open, rules-based trade environment.
- – From the perspective of supply chain and logistics, trade digitalization and trust ecosystem for digital trade has become essential, especially after the Covid-19 Pandemic.
- – By building a new platform utilizing blockchain technology such as TradeWaltz, where all participants can share information and reuse the data, it will reduce cost, time and enhance the overall value of trade.
