Japan's ruling Liberal Democratic Party is working to create a framework for policy coordination with its new coalition partner, Nippon Ishin no Kai (Japan Innovation Party), including regular talks between their senior officials,

Tokyo, Oct. 18 (Jiji Press)--Japan's Liberal Democratic Party and Nippon Ishin no Kai (Japan Innovation Party) on Saturday advanced final negotiations toward forming a coalition government, with Nippon Ishin considering options including supporting the LDP from outside the cabinet.

The Japan Innovation Party (Nippon Ishin) is drawing heavy flak from opposition parties for backtracking on its long-held pledge to ban corporate and group political donations in a coalition deal with the Liberal Democratic Party.

Takaichi’s appointment comes as Japan faces rising inflation and questions over fiscal stability. The LDP–Ishin coalition is also expected to maintain close ties to Japan’s casino-resort policy, particularly the MGM Resorts International and Orix Corp project in Osaka, valued at JPY 1.27 trillion ($8.23 billion) and due for completion in 2030.

The LDP found a new coalition partner, but Prime Minister Takaichi is still short of a majority in the lower house.

The ruling Liberal Democratic Party and opposition Nippon Ishin (Japan Innovation Party) formally signed a coalition agreement on Oct. 20, marking the final step toward creating a joint administration led by Sanae Takaichi.

The political party Nippon Ishin no Kai, now tapped as a potential member of a ruling coalition in the national government, got its start in 2010 as a local political force pushing for a more robust position for Osaka in the national context.

The LDP and Ishin together hold a combined 231 seats in the lower house of Japan’s parliament, just two shy of the simple majority needed for Takaichi to win the premiership. To get those remaining votes, the LDP has been asking for cooperation from smaller parties.