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Japan's Economic Diplomacy Towards East Asia: Fragmented Realism and Naive Liberalism. JAPAN’S ECONOMIC DIPLOMACY TOWARDS THE ESTABLISHMENT OF JAPAN – INDONESIA ECONOMIC PARTNERSHIP AGREEMENT (JIEPA) (2003-2008) By Nurul Ilmi Jamila ID no. 016201300113 A thesis presented to the Faculty of Humanities President University in partial fulfillment of the requirements for Bachelor Degree in International Relations Major in Diplomacy 2017 THESIS ADVISER RECOMMENDATION LETTER This thesis entitled “JAPAN’S ECONOMIC DIPLOMACY TOWARDS THE ESTABLISHMENT OF JAPAN – INDONESIA ECONOMIC PARTNERSHIP AGREEMENT (JIEPA) (2003-2008)” prepared and submitted by Nurul Ilmi Jamila in partial fulfillment of the requirements for the degree of Bachelor in the Faculty of Humanities has been reviewed and found to have satisfied the requirements for a thesis fit to be examined. I therefore recommend this thesis for Oral Defense. Cikarang, Indonesia, June 5, 2017 Recommended and Acknowledged by, Drs. Teuku Rezasyah, M.A., Ph.D. ii PANEL OF EXAMINER APPROVAL SHEET The panel of examiners declare that the thesis entitled “JAPAN’S ECONOMIC DIPLOMACY TOWARDS THE ESTABLISHMENT OF JAPAN – INDONESIA ECONOMIC PARTNERSHIP AGREEMENT (JIEPA) (2003- 2008)” that was submitted by Nurul Ilmi Jamila majoring in International Relations from the Faculty of Humanities was assessed and approved to have passed the Oral Examinations on June 2, 2017. Drs. Teuku Rezasyah, M.A., Ph.D. Chair - Panel of Examiners Witri Elvianti, Examiner Prof. Anak Agung Banyu Perwita, Ph.D Examiner iii DECLARATION OF ORIGINALITY I declare that this thesis entitled “JAPAN’S ECONOMIC DIPLOMACY TOWARDS THE ESTABLISHMENT OF JAPAN – INDONESIA ECONOMIC PARTNERSHIP AGREEMENT (JIEPA) (2003-2008)” is, to the best of my knowledge and belief, an original piece of work that has not been submitted, either in whole or in part, to another university to obtain a degree. Cikarang, Indonesia, June 5, 2017 Nurul Ilmi Jamila iv ABSTRACT Title: Japan’s Economic Diplomacy towards the Establishment of Japan- Indonesia Economic Partnership Agreement (JIEPA) (2003-2008) The fear of being excluded from the global economic trading outside the traditional WTO negotiations, such as, Free Trade Area and Economic Partnership Agreement has led Japan to have rearrangement on its policies of international economic. Japan has been promoting on establishing Economic Partnership Agreement (EPA) with other countries. The model of EPA is advantageous for Japan as it is easier for the policy-makers to reserve some accounts in protecting certain economic sector while in the same time negotiating on the liberalization of specific sector that feels the need to be more competitive in a larger scale and reform the structures. The strategic priorities for Japan in finding partners in doing EPA are being judged from the country’s economic, geographic, feasibility, time- related, and political and diplomatic criteria, and Japan saw Indonesia as a country that would fit to be the perfect partner. Japan and Indonesia has enjoyed complementary relations and interdependent economic ties, so the proposal from Japan was received well by Indonesia. This thesis hence analyzes the strategy of Japan in performing their economic diplomacy towards the establishment of Japan-Indonesia Economic Partnership Agreement. Keywords: Economic Partnership Agreement, economic diplomacy, national interest, Foreign Direct Investment. v ABSTRAK Judul: Japan’s Economic Diplomacy towards the Establishment of Japan- Indonesia Economic Partnership Agreement (JIEPA) (2003-2008) Ketakutan dikecualikan dari perdagangan ekonomi global di luar perundingan tradisional WTO, seperti, Free Trade Area dan Economic Partnership Agreement telah membuat Jepang memiliki penataan ulang kebijakan ekonomi internasionalnya. Jepang telah mempromosikan pembentukan Economic Partnership Agreement (EPA) dengan negara lain. Model EPA menguntungkan bagi Jepang karena lebih mudah bagi pembuat kebijakan untuk mencadangkan beberapa akun dalam melindungi sektor ekonomi tertentu sementara pada saat yang sama menegosiasikan liberalisasi sektor tertentu yang merasa perlu untuk lebih kompetitif dalam skala yang lebih besar. Dan reformasi struktur. Prioritas strategis Jepang dalam menemukan mitra dalam melakukan EPA dinilai dari kriteria ekonomi, geografis, kelayakan, waktu, dan politik dan diplomatik negara tersebut, dan Jepang melihat Indonesia sebagai negara yang cocok untuk menjadi mitra yang sempurna. Jepang dan Indonesia telah menikmati hubungan saling melengkapi dan hubungan ekonomi yang saling bergantung, sehingga usulan dari Jepang diterima dengan baik oleh Indonesia. Tesis ini kemudian menganalisis strategi Jepang dalam melakukan diplomasi ekonomi mereka menuju pembentukan Japan-Indonesia Economic Partnership Agreement. Kata Kunci: Perjanjian Kemitraan Ekonomi, diplomasi ekonomi, kepentingan nasional, Investasi Langsung Asing. vi ACKNOWLEDGEMENT All praise and gratitude dedicated only for Allah SWT, I cannot be grateful enough for Your guidance. Alhamdulillah, during these harsh periods of time I could use the opportunity to get closer to You rather than being stressed out. To the most precious treasure in my life that I could never find the replacement with anything, Mamah Papah I love you so much. Thank you for everything you have done, I know both of you have prayed for me over and over, tried your best to sacrifice everything for me, and loved me since I was just the size of a bean. And to my little brother who already became a man, Adnan, thank you for your support and my triplet little brothers who are always be my mood- booster every time I felt blue, Ake, Anji, and Be. My greatest respect and gratitude would be delivered to my supervisor Mr. Teuku Rezasyah, for sharing your knowledge, your jokes, and your precious time. For my second supervisor, Mrs. Witri Elvianti, thank you miss I could not finish this thesis without any of your help, critics, and suggestions. And also for Prof. Banyu, thank you so much for giving me your precious knowledge towards the better of my thesis. Without any help from all of you, it would impossible for me to finish this thesis. For my special buddies, Dwitiya Ayu, Dyah Windasari, Siska Indriyani and Tulus Budiadji Syam, thank you guys for always accompany me whenever I need a time-out from working in my thesis and for all the stories, jokes, and silly moments we had. Thank you Yu, for always be there and our silly conversations, although sometimes we got apart by distance and time but I always knew you are just at the other side of the line. Thank you Diy, for your advices on how to face this period of time and shared your experience when you were on this period of time. Thank you Sis and Tul, for your concerns towards me and always shared jokes and things that made me laugh hysterically and made me forget about the stress I got from the thesis. vii For my closest ones during these harsh periods of time, Adiya Fedziyasti Bandi, Aulia Rahma Fadilla, Corry Faby Amanda, and Windasari Gayuh Mardatillah thank you for your existence. Thankyou Ay, for being my “dinding” and your kindness on letting me to a refugee at your place, I will cherish the moments, especially the silly ones we had during these times, do not ever forget me yah. Thankyou Le, for those “life-wise” conversations we have spoken, you are literally the best to talk about those kind of things and certainly for being my first friend in Presuniv up until now, and don’t worry now is my time to help you. Thankyou Cor, for being my “teman-seperjuangan” since the very beginning, I cannot thank you enough for everything and all those things we have been through together, I assure you we are going to laugh on these things in the future, and see you in Makkah with our husband! Thankyou Win, for those chats and phone calls while sharing your stories that divert my focus from being too stressed out and thank you for always believing in me that I could finish my thesis this year, and please hang in there win. For my Cikarang sisters, Anisa Faza, Izzati Robbi Hamiyya, Jihan Dja’far Sidik, Lathifatus Syifa, and Liddiini Haniifa who always remind me constantly to be a better person, particularly a better muslimah. You guys are the reasons I am who I am today, in terms of being a muslimah. Without you guys, I may have not found the right path. And of course I thank you guys for all of your supports, prayers, and guidance during my thesis and my university life. Literally, I could not go through my university life without you guys. I owe big time from you all. Lastly, I would like to deliver a special gratitude towards kak A. Ghozali Rachman, who guides me indirectly through chats and your thesis files. Thank you kak, without you my thesis could also be impossible to get finished. Cikarang, Indonesia, May 29, 2017 Nurul Ilmi Jamila viii TABLE OF CONTENT Contents THESIS ADVISER RECOMMENDATION LETTER .................................................................... ii PANEL OF EXAMINER APPROVAL SHEET ........................................................................... iii DECLARATION OF ORIGINALITY ......................................................................................... iv ABSTRACT .......................................................................................................................... v ABSTRAK ........................................................................................................................... vi ACKNOWLEDGEMENT ...................................................................................................... vii TABLE OF CONTENT
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