INDO-JAPANESE COOPERATION (IJEPA) IN INCREASING NATIONAL INCOME CASE STUDY OF THE INDONESIAN AUTOMOTIVE 4.0 REVOLUTION

Abstract

Cooperation between Indonesia-Japan has been going on since 1958. In 2007 bilaternal relations between the two countries ended with the signing of an economic cooperation agreement called IJEPA ((IndonesiaJapan Economic Partnership Agreement). The agreement was prepared to generate benefits for both parties fair, balanced and measurable through liberalization of market access, facilitation, and cooperation through capacity building for priority industrial sectors.In IJEPA there are 11 points of cooperation, one of the main points is Cooperation, where the Japanese agreed to provide assistance through capacity building Indonesian industry, one of which is in the automotive industry. Japan is one of the developed countries in the ASIA region, especially in the automotive industry. Japan's presence as a country of its special Industry Automotive is considered to be very helpful in developing an Autonomous Industry in Indonesia. This collaboration resulted in an agreement namely the Manufacturing Industry Development Center (MIDEC) which was very petrified in the development of the automotive industry in Indonesia. To increase Indonesia's industrial capacity especially in the automotive sector, through (MIDEC) Indonesia and Japan collaborate in several main activities, such as Technical Assistance, and Training. From the results of this study, it can be concluded that macro, Indonesia and Japan both benefit from the application of the Special IJEPA in the automotive industry. However, Indonesia received a greater level of benefits from Japan in terms of human resource development and the national automotive industry as well as influencing Indonesia's national income both in nominal terms and presentations, as well as having an impact on doubling the doubling of Indonesia's export earnings. The Indonesia-Japan Cooperation that was established in IJEPA, can be seen a very significant development specifically in the field of Automotive, towards Indonesia's national income, this development is not only assessed in terms of national income. One other advantage is through employee training programs by bringing in experts from Japan as well as employee dispatch programs to work for a certain period of time in Japan, resulting in an increase in HR especially in the automotive sector. Where the employee's results from training become a valuable asset for the company, because after participating in the activity, they can share knowledge with other employees who have never participated in the program. IJEPA has an important contribution in increasing Indonesia's national income.