| Summary: |
From an economic perspective, Indonesia is now included in the category of third
world countries or developing countries who are trying to align with the developed countries.
One of the Indonesia's efforts is establishing economic cooperation with several countries
including Japan. Before Negotiations of Economic Partnership Agreement between Indonesia
and Japan, they are already cooperated in the economics cooperation through Official
Development Assistance scheme (ODA). Through ODA, Japan has supported Indonesia in
financial trouble. However, entering the era of the 2000s, Japan is no longer relying on
assistance through ODA scheme, but more emphasis and has shifted through a cooperation
strategy of FTA (Free Trade Agreement) or EPA (Economic Partnership Agreement). Both
type of assistance have different objectives. ODA goal is to reduce the cost of investment of
Japanese firms in ODA recipient countries. While the EPA goal is to ensure the energy supply
in the long term.
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