Upon hearing the news that sexual apathy was leading to a drastic population decrease in Japan, I was quite amused by the whole debacle (especially when imagining people panicking over the younger generation's lack of sex). It just seemed like a first world issue that merited no response. However, according to Max Fisher in an article written in the Washington Post, the problem is much more serious than previously believed.
Apparently, the low birth rate makes it difficult for Japan's economy since in the long run, there won't be enough workers to keep the economy stable. Because Japan is a such a huge trading partner with powers like China and the United States and because Japan has even more debt than Greece, any financial trouble caused by this demographic problem could trigger all types of instability in the global economy as a whole!
Examining Japan's societal issues is the key to understanding this disinterest towards relationships and sex. In an interview with the Guardian, Sex and Relationship counselor Aoi Aoyama breaks it down nicely. For women, Japan's corporatism and social conservatism make it difficult to maintain a family life and successful career-so much so that married women who work are often called "devil wives". Given the choice between having a family or a job, Japanese women are understandably choosing to pursue careers. They're valuing their independence, which is very commendable as I think that having to be the stay at home parent because society demands it is wrong.
Easing up on the corporatism and demanding work schedule seems to be the best solution to the problem. If people are too overwhelmed with work, it seems pretty obvious that they won't have time to actually seek intimate relationships (hence procreating). Also, something needs to be done about Otaku culture. If these people actually understand the value of interacting with real people, the situation could drastically improve.