Joint Press Release H.E. M. Hatta Rajasa Coordinating Minister for Economic Affairs, Indonesia And H.E.

Yukio Edano Minister for Economy, Trade and Industry, Japan At the 3rd Indonesia-Japan Joint Economic Forum November 18th, 2011, Bali, Indonesia 1. The 3rd Indonesia-Japan Joint Economic Forum was held on November 18 th, 2011 in Bali, Indonesia, and co-chaired by H.E. M Hatta Rajasa, Coordinating Minister for Economic Affairs of Indonesia, and H.E. Mr. Yukio Edano, Minister of Economy, Trade and Industry of Japan. The forum was attended by senior government officials and leaders of business organizations from both countries including H.E. Jero Wacik, Minister of Energy and Mineral Resources, H.E. Mohamad S. Hidayat, Minister of Industry, H.E. Muhammad Lutfi, Ambassador Extraordinary and Plenipotentiary of the Republic of Indonesia and H.E. Yoshinori Katori, Ambassador Extraordinary and Plenipotentiary of Japan, Mr. Suryo Bambang Sulisto, Chairman of the Indonesian Chamber of Commerce and Industry (KADIN), Mr. Sony Harsono, Chairman, Japan-Indonesia Committee of KADIN, Mr. Yonekura, Chairman of KEIDANREN (tambahkan yg lengkap), Mr. Asada, Chairman, Japan-Indonesia Economic Committee of KEIDANREN, Mr. Nakamura, Vice Chairman of KEIDANREN, Mr. Hyodo, Chairman of JJC (Japan-Jakarta Club), discussed infrastructure development, improvement of the business and investment climate in Indonesia, and industrial cooperation between Japan and Indonesia. 2. Both sides shared the recognition on the importance to cooperate in the implementation of the Master Plan for Acceleration and Expansion of Indonesia Economic Development Plan (MP3EI) which Indonesia Economic Development Corridors(IEDC) settled as one of the pillars as well as connectivity and Human Resource Development announced by the Indonesian government in May 2011. Both sides agreed to continue to cooperate closely, boosting actions on the business side and related organizations from both countries for project promotion and establishment of necessary assistance and institutions. Furthermore, both sides welcomed the progress of cooperation among the two countries and reconfirmed the

necessity for further collaboration to accelerate the work progress on the Metropolitan Priority Areas for Investment and Industry (MPA) which has been embodied into the MP3EI. Both sides shared the view on the importance to promote the following fields of cooperation to accelerate the process in order to realize the MP3EI: a) MPA Based on the discussion of the Steering Committee and the Technical Committee meetings of the MPA, both sides confirmed the importance to facilitate the implementation of the Fast Track Projects and to accelerate the work progress of the comprehensive Master Plan for the Jabodetabek MPA, including the Potential Priority Projects. Both sides also confirmed to hold the Third Steering Committee meeting in the second quarter of 2012, or earlier if necessary. b) Power Sector To promote eco-friendly and sustainable economic growth, and to meet the growing electricity demands, as well as in tackling environmental concerns in Indonesia, both sides shared the recognition that the active utilization of Japanese technologies regarding high-efficiency coal thermal power plants, geothermal power development, hydro power plants and power transmission system would be extremely important and useful infrastructure development in the power and energy fields. Both sides also confirmed working continuously to deepen cooperation for ensuring stable and reliable power supply. c) Smart Community Both sides confirmed to mutually cooperate in realizing the projects on Smart Community, which is a concept of new eco-friendly social system, in the field of city development, stable power supply to isolated island and smart industrial park etc., under the cooperation of Japan Smart Community Alliance (JSCA) based on East Asia Smart Community Initiative (EA-SCI). Both sided shared the necessity that the public and private sector from both countries, such as New Energy and Industrial Technology Development Organization (NEDO) in Japan and institutions concerned in Indonesia cooperate closely. d) Bilateral Offset Credit Both sides shared the view that the diffusion of Japanese low-carbon

technology, through bilateral offset credit mechanism, would contribute to low-carbon growth in Indonesia, and broadening the consultation process both at a government and private sector, through identifying and implementing several model projects, capacity and joint studies, building on the ongoing activities that are useful for enhancing mutual understanding on the mechanism in line with the principle of the United Nations Framework Convention on Climate Change and Cancun Agreements, and for the promotion of concrete actions for GHG emission reductions by low carbon technologies, products and services. e) Investment in local areas Both sides shared the view that it is important to improve the capacity of infrastructure and integratedness of connectivity from the viewpoint of the investor, which has invested outside the Java Island through the projects such as the geothermal power development in the Sumatra Island, infrastructure development for storage and transportation of coal in the Kalimantan Islands. f) Connectivity Both sides confirmed to continue to discuss and cooperate on development of infrastructure such as roads, ports, airports and power transmission system, and improvement of institutions such as simplification of customs procedure in order to enhance connectivity in Indonesia and beyond ASEAN, which will be closely coordinated with the Master Plan on ASEAN Connectivity (MPAC) and the Comprehensive Asia Development Plan (CADP)utilizing, among others, Economic Research Institute for ASEAN and East Asia (ERIA). g) Soft Infrastructure Both sides recognized that it is particularly necessary to promote and introduce the PPP scheme proposed by the private sector to enhance capacity building regarding implementation of infrastructure technologies. Furthermore, it was pointed out that it is important to develop international standardization and norms in the field of industrial standards and environmental regulations in Indonesia by the private sector. h) Industrial Promotion Both sides confirmed to contribute on industry promotions in sectors, promoted on the MP3EI through strengthening the industrial cooperation on the MIDEC under IJEPA.

3. Both sides discussed the latest update on the business and investment environment improvement in Indonesia. They confirmed to enhance and intensify efforts to increase Japanese investment in Indonesia and to continuously ensure effective implementation of IJEPA taking into account requests from the private sector of both countries. Furthermore, both sides discussed the further efforts of Government of Indonesia to improve investment environment in Indonesia. 4. Both sides reconfirmed that the integrated actions, such as infrastructure development, industry promotion and business environment improvement in Indonesia utilizing Japanese technology and know-how evolve the growth of each country under the MP3EI. Both sides also confirmed to continue comprehensive cooperation in a broader range, including infrastructure, trade and investment, industrial promotion, natural resources, energy and regional economic integration in a close collaboration between both countries government and private sector. 5. Both sides also confirmed that the 4th Indonesia-Japan Joint Economic Forum will be held at a date to be mutually confirmed upon by both sides. In order to fully explore shared commitments, both sides look forward to further discussions on specific matters raised at the meeting through the existing bilateral dialogues.