IJ-EPA DAN IMPLIKASINYA TERHADAP KINERJA PERDAGANGAN INDONESIA - JEPANG

In 2007 Indonesia and Japan signed a partnership agreement of Indonesia-Japan Economic Partnership Agreement (IJ-EPA). In order to implement the IJ-EPA and to prevent trade diversion as an impact of tariff preferences, both governments required the Certificate of Origin (COO) scheme. This study elaborates the use of COO-IJ-EPA and the impact of IJ-EPA on bilateral trade performances between the two countries. According to data analysis and survey, it was found that the number of COO-IJ-EPA was the lowest compared to other free trade agreements. The low share of the COO-IJ-EPA was caused by the following factors: the use of Form A as an alternative choice in export activity, inadequate human resources at the institutions issuing COO, reluctance to disclose the production cost structure and the lack of socialization in regards with trade facilitation under IJ-EPA scheme. Bilateral agreement under IJ-EPA has also brought impact to the Indonesia's import pattern with Japan. After the implementation of the agreement, Indonesia's import for certain products increased significantly, such as importation of automotive products and diesel machines. On the contrary, the agreement did not have significant impact to Indonesia's export pattern.