By Tony Agus Ardie,
\nPresident of the U.S. Committee of the Indonesian Chamber of
\nCommerce and Industry<\/p>\n
The fundamentals of Indonesian-U.S. relations have
\nremained largely unchanged over the years.
\nIndonesia, the world's fourth most populous country with
\nmore than 210 million people, is geopolitically pivotal to peace
\nand stability in Southeast Asia. It is also richly endowed with a
\nvast variety of natural resources.
\nThe United States, as the world's largest economy, the
\nbiggest source of technology and the greatest influence on the
\nglobal financial market, the International Monetary Fund (IMF)
\nand the World Bank, plays an important role in supporting
\nIndonesia's efforts to solve its economic woes.
\nThe problem is that Indonesia is now undergoing a painful
\nprocess of transition from an authoritarian, centralized
\ngovernment into a more democratic and decentralized one.
\nIts complications have engulfed Indonesia since early
\n1998, prompting many U.S. politicians and analysts to become
\noverly fixated on the daily turmoil of events, such as raucous
\nstreet demonstrations, rampant corruption and security problems
\nin some areas. This often results in an overly pessimistic
\nassessment of Indonesia's future, overlooking the medium and
\nlong-term perspectives following the painful learning process.
\nMany Indonesians perceive the United States as an inward-
\nlooking superpower which tends to overlook the complex problems
\nin a country like Indonesia.
\nTrue, structural impediments such as the lack of trust in the
\njudicial system, excesses in the initial process of transferring
\npower to local administrations, virtually bankrupt big
\ncorporations and low investor confidence have been a turnoff to
\nnew investment.
\nHowever, these problems are being tackled with great
\nassistance from the World Bank, the IMF and the international
\ncreditor consortium, the Consultative Group on Indonesia (CGI),
\nof which the United States has been a loyal donor member since
\n1967.
\nProgress has been made, as can be noted from the strengthening
\nmacroeconomic and political stability, even though many contend
\nthe achievements would have been much greater if members of the
\npolitical elite were united in setting their own ambitions aside
\nto strive for the national interest.
\nThe most positive development is that Indonesian national
\nresilience has passed the toughest test over the past five years
\nexacted by political turbulence and the economic debacle.<\/p>\n
Enormous changes have been achieved and continue, and a
\nprofound transformation will eventually reinforce the country's
\neconomic and political stability.
\nAs a longtime friend of Indonesia, the United States can play a
\nrole in alleviating this difficult, often painful process.
\nIt's needless to reiterate the importance of more vigorous
\ndialogs between both countries' governments and peoples to build
\nbetter mutual understanding and cooperation. This is what the
\nU.S. Committee of the Indonesian Chamber of Commerce and Industry
\n(KIKAS) has done through a series of missions to the United
\nStates to conduct regular discussions with senators, politicians,
\nmembers of the government circle, academics and businesspeople.
\nBut the U.S. government, on top of its traditional assistance
\nthrough the multilateral agencies and CGI, can greatly help fuel
\na stronger economic recovery in Indonesia by facilitating
\nbroader, better targeted business relations.
\nIn talking about U.S. business, there is tendency to focus on
\ngiant or multinational companies such as Exxon\/Mobil Oil,
\nGeneral Electric, IBM and Freeport, overlooking the small and
\nmedium-size enterprises (SMEs) that have always played a very
\nimportant role in the American economy.
\nNotwithstanding the great contribution by American giants in
\ndeveloping oil and other mining resources, we should focus on a
\nbroader and bigger American role in empowering Indonesian SMEs to
\nenter the international market, including the United States.
\nAfter all, the American small business development scheme under
\nthe Small Business Act is one of the best-managed programs in
\npromoting the nurturing of business through cooperation between
\nthe government, private sector and universities.
\nThe U.S. model has been tested by pioneering SME empowerment
\nefforts in Yogyakarta, involving the community's three pillars -
\nthe local administration, committed private entrepreneurs and
\nGadjah Mada University -- and now attracting support of the
\nVienna-based United Nations Industrial Development Organization.
\nThis pilot project in integrated shrimp industry, jointly
\nundertaken by PT Indokor Daya Mina, the Yogyakarta administration
\nand Gadjah Mada University, could become a catalyst for SME
\ndevelopment in other industries.
\nWith its long experience in community-based development projects
\nin various provinces in Indonesia, the United States Agency for
\nInternational Development should refocus its contribution to SME
\nempowerment as well.
\nMore resource allocations are needed for the development of SMEs,
\nwhich, besides being labor intensive, have proven their
\nresilience and flexibility over the past five years of the
\neconomic crisis.
\nThe more SMEs can be made competitive on the global market, the
\nstronger and broader will be the foundations of the Indonesian
\neconomy and the better will be the chance for expanding and
\ndiversifying exports.
\nEmpowerment of SMEs will, directly or indirectly, also support
\nbigger businesses in mutually beneficial cooperation. Therefore,
\nmutual cooperation among small, medium and big entrepreneurs can
\nbe expected to create huge employment opportunities, prosperity,
\nsecurity and stability in Indonesia and its fellow members of the
\nAssociation of Southeast Asian Nations (ASEAN).
\nAlthough more than 25 percent of Indonesian exports go to the
\nU.S., their structure is weak because they consist mostly of
\nenergy, textiles, garments and primary commodities that are
\nhighly vulnerable to high price volatility.
\nThe collapse of large Indonesian corporations during the
\neconomic crisis that struck in 1997 and the mounting political
\ndemand for economic equity and justice have made SME development
\none of the most appropriate programs to generate a stronger
\nrecovery, which will be socially and politically sustainable.
\nSuch programs will serve as a stronger base for closer Indonesia-
\nU.S. relationships because they benefit SMEs, the most important
\neconomic sector for the vast majority of people.<\/p>\n
-----------30-------<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/by-tony-agus-ardie-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }