JAKARTA: Japanese firms should take advantage of the persistently high yen and invest offshore, Japan's trade minister said Thursday.
"The rising yen has made it difficult for exporters, but they will overcome these problems. The positive side is that it's cheaper for us to invest overseas," Japanese Trade Minister Yukio Edano said on a visit to Jakarta.
His comments come as the yen sits near post-war record highs and two days after Japan unveiled an interim report on a series of measures aimed at preventing the strong currency from hurting the nation's economy and industry.
Japan's export sector, the main driver behind world's number three economy has been hammered by the strong unit, which makes their goods expensive overseas and eats away at repatriated earnings.
The yen has surged -- it also hit a 10-year high against the euro on Thursday -- as dealers flock to safer haven assets while the outlook for the global economy remains unstable.
While in Jakarta Edano also met, Indonesian Economic Affairs Minister, Hatta Rajasa to reaffirm $20-30 billion investment in transport infrastructure for the Indonesian capital.
The investment will include 17 projects in Greater Jakarta, including a mass rapid transit system and an upgrade of the international airport.
"Around 40 million people come through the airport each year, and we anticipate 100 million passengers by 2025, so we welcome Japan's investment," Rajasa said.
The investment aims to tackle Jakarta's transport woes, including congested roads and ageing infrastructure that have hurt foreign investment and business activity in the city.
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