The two Asian nations agreed in July last year to begin working towards the signing of a comprehensive Economic Partnership Agreement, which includes trade in goods and services, investment, movement of people and competition policies.

The Japanese delegation is headed by Deputy Foreign Minister Mitoji Yabunaka while former Indonesian Ambassador to Japan, Soemadi Brotodiningrat, leads the team from Jakarta.

Yabunaka told the meeting he hoped the two sides could move quickly to reach a deal, saying: "Time is important."

Japan has mainly focused diplomatic efforts on Southeast Asia at a time when its relations with closer neighbors China and South Korea are strained, largely over its wartime history.

Japan this month proposed the formation of a vast Asian economic free-trade zone including China, India, ASEAN and South Korea, a market that would cover half the global population and rival the European Union and NAFTA markets.