AN ANALYSIS OF OPPORTUNITIES, THREATS AND STRATEGIES FOR THE DEVELOPMENT OF INDONESIA’S INTERNATIONAL TRADE IN THE ELECTRONICS SECTOR, AND THE IMPACT OF JAPANESE TRADE POLICY: A CASE STUDY OF INDONESIA AND JAPAN

Abstract

This study aims to analyse the opportunities and threats facing Indonesia’s international trade in the electronics sector, examine the impact of Japanese trade policy, and formulate strategies to enhance export competitiveness. The study employs a descriptive qualitative approach using case study methods and secondary data obtained from the Central Statistics Agency (BPS), UN Comtrade, the World Bank, the WTO, the OECD, JETRO, METI, and various academic publications from the period 2020–2025. The analysis was conducted through descriptive analysis, SWOT analysis, and an evaluation of Japan’s trade policies. The research findings indicate that the implementation of the Indonesia–Japan Economic Partnership Agreement (IJEPA), increased Japanese investment, and integration into the Global Value Chain (GVC) present opportunities for boosting Indonesia’s electronics exports. However, the industry’s competitiveness remains hampered by a reliance on imports of high-tech components, low levels of technological mastery, and stringent quality standards. Recommended strategies include strengthening the domestic components industry, enhancing research and development, developing human resources, and optimising the utilisation of the IJEPA to boost the competitiveness of Indonesia’s electronics exports.