ASIATODAY.ID, JAKARTA — Indonesia is accelerating its strategy to strengthen its position in Asia’s trade landscape by expanding market access, improving export competitiveness, and connecting domestic industries with regional supply chains.
The government is encouraging global manufacturers and local businesses to maximize Indonesia’s growing network of trade agreements, creating new opportunities for exports across Asia and beyond.
Indonesia Trade Minister Budi Santoso highlighted the strategy during a meeting with representatives of Denso Global and Denso Group Indonesia at the Ministry of Trade in Jakarta on Thursday, July 16, 2026.
The meeting, led by President Commissioner of Denso International Pte Ltd Hisashi Yanase, focused on strengthening industrial competitiveness, improving export performance, and addressing challenges faced by businesses operating in Indonesia.
“We encourage manufacturing companies, including investors operating in Indonesia such as Denso Group Indonesia, to utilize Indonesia’s trade agreements. These agreements provide more competitive tariff advantages in export destination markets,” Budi Santoso said.
Indonesia has implemented 20 international trade agreements, while 15 agreements are undergoing ratification and 11 others are currently under negotiation.
The government sees these agreements as strategic tools to expand Indonesia’s export reach, particularly in Asia, where regional production networks and supply chains continue to grow.
Japan Partnership Strengthens Manufacturing Connectivity
Japan remains one of Indonesia’s most important economic partners, particularly in the manufacturing, automotive, technology, and industrial sectors.
The presence of companies such as Denso reflects the growing integration between foreign investment, Indonesia’s industrial capabilities, and regional supply chains.
During the meeting, Denso representatives highlighted several areas that could further enhance Indonesia’s competitiveness, including simplifying export procedures and improving infrastructure supporting trade activities.
The Ministry of Trade responded by strengthening digital trade facilitation through the electronic Certificate of Origin system (e-SKA).
The system enables exporters to more easily access preferential tariffs provided under Indonesia’s trade agreements. Through automated processing, exporters can identify available tariff benefits when shipping products to partner countries.
The automated system currently supports exports to strategic markets, including Japan, China, South Korea, Hong Kong, the United Arab Emirates, Australia, and Pakistan.
“Indonesia’s Certificate of Origin system has been automated. When businesses export to countries that have trade agreements with Indonesia, the system will immediately direct them to utilize available preferential tariff facilities,” Budi Santoso said.
Indonesian Coffee Expands Into Japan’s Premium Market
Beyond industrial products, Indonesia is also strengthening exports of high-value agricultural products, with coffee emerging as one of the key opportunities in the Asian market.
The Ministry of Trade is encouraging Indonesian coffee producers, particularly small and medium enterprises, to improve quality standards and meet the requirements of Japan’s premium coffee market.
Japan’s growing demand for specialty coffee provides new opportunities for Indonesian producers, supported by the country’s diverse coffee origins from regions such as Sumatra, Java, Sulawesi, and other production centers.
By improving product quality, certification, and export readiness, Indonesian coffee businesses are expected to gain stronger access to international markets and move beyond traditional commodity-based trade.
Building a More Competitive Asia Trade Hub
The government emphasized that expanding exports requires stronger cooperation between businesses, ministries, and relevant institutions, particularly in addressing logistics challenges and improving trade efficiency.
“Every challenge faced by businesses needs to be communicated so it can be addressed together with relevant stakeholders. We are committed to supporting smoother exports and creating a more conducive business environment,” Budi Santoso said.
Indonesia’s approach combines industrial investment, trade agreements, digital facilitation, and support for local exporters to build a more competitive position in Asia’s evolving economic landscape.
From automotive components produced within regional supply chains to premium coffee reaching international consumers, Indonesia is positioning itself as a growing trade hub that connects Asia’s industries, markets, and opportunities. (AT Network)
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