President Prabowo Subianto on Saturday hosted Shigeru Ishiba at the presidential palace in Bogor on the outskirts of Jakarta as part of a visit by the Japanese prime minister to Southeast Asia's largest economy. Both leaders took office last October and this was their first summit meeting together.
"Strengthening cooperation with Southeast Asia is one of the top priorities for Japan's diplomacy," Ishiba told reporters at a joint news conference. "In particular, Indonesia, which is [located at a] strategic point where the Indian and Pacific Oceans meet and leads this growth center, is a comprehensive strategic partner that shares basic values and principles with Japan."
In addition to a grant of fast patrol boats as part of Tokyo's defense aid program to Indonesia, Ishiba said the two leaders also agreed to launch a trade-level discussion on maritime security between the two countries, including defense equipment and technology cooperation. Prabowo and Ishiba also agreed to hold a meeting between top diplomatic and defense officials by the end of this year. If realized, the so-called two-plus-two meeting would be the first held since 2021.
For Indonesia, the bilateral meeting is seen as a part of Prabowo's efforts to achieve a diplomatic balance.
"Indonesia has a desire to maintain good relations with all countries in the world, all economic blocs where we want to maintain a close relationship," Prabowo said during the joint news conference. "So that it can contribute to an atmosphere that can reduce tensions between major countries."
One Indonesian diplomat, speaking on the condition of anonymity, told Nikkei Asia that Indonesia does not want to be dragged into one bloc -- whether it's a China-centric bloc or Western bloc. "So for [assuming] balance, we see that improving relations with Japan in various fields is very necessary so that Indonesia does not depend on just one country."
The change of leadership in the U.S. also motivated the two Asian nations to strengthen ties in the defense sector.
Under the administration of President Joe Biden, the U.S. has been boosting defense cooperation with Southeast Asian nations such as the Philippines in the face of countering China's expanding influence and aggression within the region, especially after the South China Sea and the Taiwan Strait emerged as two flashpoints for tensions in recent years.
However, President-elect Donald Trump's "America first" policy could reduce Washington's commitment to security in Asia, posing challenges to countries like Japan and Indonesia regarding how to stabilize the region in light of China's growing clout.
On the economic front, Prabowo, during the press conference, expressed his hope for Japan's help in relevant fields, including energy and fisheries. He also said Indonesia is seeking expertise from Japan for a newly launched nationwide free school meal program, Prabowo's flagship policy.
Ishiba responded that Japan is keen to dispatch its school meal experts to Indonesia in addition to offering help in fishery and agricultural development.
Japan also expressed its support for Indonesia's intention to join the Organisation for Economic Co-operation and Development, a rich-nation bloc. While Indonesia announced this week that it formally joined as the latest full member of BRICS, the informal grouping of emerging economies, Indonesia was also in OECD accession talks.
Separately, the Japanese government on Saturday announced that it would provide a loan of about 83 billion yen ($526 million) for the expansion of Patimban Port near Jakarta. The expansion, which includes a new container terminal and an automobile terminal, will improve the logistics capacity of the capital area, according to the announcement.
Japan is hoping to increase its economic ties with Indonesia, especially as Beijing's economic clout grows in Southeast Asia. China's direct investment in Indonesia has overtaken Japan's in the past decade, and Chinese electric vehicle makers are challenging Japan's dominance in Indonesia's car market, announcing new investments in building plants and rolling out their latest models in recent years.
Ishiba, who is on a four-day tour of Southeast Asia, stopped in Malaysia before heading to Indonesia, holding talks with Malaysian Prime Minister Anwar Ibrahim on Thursday. It is Ishiba's first overseas visit as prime minister, excluding international conferences.
Additional reporting by Rezha Hadyan and Bobby Nugroho.