Tokyo and Jakarta announced Tuesday they have agreed on an overall framework for liberalizing bilateral trade, including Japanese autos and Indonesian natural gas and human resources.
The tentative free-trade agreement was reached during a meeting between Prime Minister Shinzo Abe and Indonesian President Susilo Bambang Yudhoyono, in Tokyo since Sunday on a four-day visit.
The move for an FTA came as Japan tries to secure a stable supply of natural gas, including liquefied natural gas, and Indonesia hopes to increase the competitiveness of its products in Japan. Indonesia also needs to attract foreign investors.