Indonesia and Japan are slated to sign the much-awaited Economic Partnership Agreement (EPA) during Prime Minister Shinzo Abe's visit to Jakarta on Aug. 19, a spokesman said on Monday.

"With the signing of the EPA, Indonesia will have a broader access to the Japanese market and we expect stronger bilateral trade ties, as well as bigger Japan's investment in Indonesia," said Dino Patti Djalal, a spokesman for President Susilo Bambang Yudhoyono.

The two countries have been in tough negotiations for the EPA for the last two years.

Abe's visit will be his first as prime minister, reciprocating a visit by Susilo to Tokyo in December 2006.

Dino said Indonesia currently houses some 1,000 Japanese firms that provide 200,000 jobs for local people.

Japan is Indonesia's largest trade partner and individual creditor.

According to the government statistics, the bilateral trade volume between Indonesia and Japan stood at 27 billion U.S. dollars in 2006 in Indonesia's favor.