Japan and Indonesia signed on March 30, 2021 a pact to facilitate the transfer of Japanese defense equipment and technology to Indonesia. This pact was signed, seeing the rise in Chinese aggression and assertiveness in the region. One of the reasons for this pact was the shared concern about Chinese domination and claims in the South China Sea and the East China Sea.

In the East China Sea, Japan and China both claim the Senkaku/Diaoyu islands and are making constant efforts to increase their military capabilities. Similarly, in the South China Sea, the Chinese nine-dash line overlaps the Indonesian exclusive economic zones. Both Tokyo and Jakarta have maritime disputes with Beijing. Consequently, strengthening maritime security is the top main concern of this pact. Indonesia and Japan have agreed to increase defense cooperation and start a joint exercise in the South China Sea.

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