Malaysia, RI enjoy cordial ties despite problems<\/p>\n
Veeramalla Anjaiah, Staff Writer, The Jakarta Post, Kuala Lumpur<\/p>\n
Relations between Malaysia and its sprawling neighbor
\nIndonesia are solid despite some problems and their different
\nperspectives in regards current issues like haze, illegal
\nIndonesian immigrants, and territorial claims.<\/p>\n
Both Kuala Lumpur and Jakarta consider their differences to be
\na litmus test of their bilateral ties.<\/p>\n
Malaysia, with a Muslim majority, has been enjoying close and
\ncordial relations with Indonesia, the world's largest Muslim
\nnation, since the end of the konfrontasi (1965-67) era when they
\nhad verged on the edge of armed confrontation.<\/p>\n
\"Our bilateral relations are very good, and we manage it very
\nwell. We know that there are differences in our approaches and in
\nregards some sensitive issues, but we also know how to overcome
\nthese differences and handle those sensitive issues,\" Syed Hamid
\nAlbar, Malaysian Minister of Foreign Affairs, told The Jakarta
\nPost in Malaysia's new administrative capital, Putra Jaya,
\nearlier this month.<\/p>\n
Scores of Malaysians interviewed by the Post said they were
\nquite unhappy with the Indonesian government's handling of the
\nhaze problem. Nearly every dry monsoon, thick smoke caused by
\nforest fires in Sumatra and Kalimantan covers Malaysia and
\ncreates a health hazard for thousands of Malaysians.<\/p>\n
Bilateral ties also became a bit strained following the
\nmassive deportation of thousands of illegal Indonesian workers
\nfrom Malaysia, a few of whom were even jailed and caned for
\nresisting deportation procedures.<\/p>\n
The incident led to a war of words between Malaysian officials
\nand Indonesian political leaders and activists, and provoked
\nprotests by Indonesian labor activists at the Malaysian Embassy
\nin Jakarta.<\/p>\n
According to Hamid Albar, there are almost one million
\nIndonesians who are legal residents in Malaysia. Malaysia also
\nhas another one million illegal foreign workers from various
\ncountries, and the majority of these illegal workers are
\nIndonesians.<\/p>\n
\"We have a policy of prospering by neighbors,\" said the
\nforeign minister.<\/p>\n
Despite the policy, Malaysia, in an unprecedented move and
\narmed with its new immigration laws, deported several hundred
\nthousands of illegal aliens including 480,000 Indonesian workers.<\/p>\n
\"We want to take Indonesians, but we don't want them to be
\nexploited. What we have been saying is that they shouldn't come
\nillegally,\" Hamid Albar explained, adding that his country also
\nneeded Indonesian workers to help support its growing
\nagricultural, industrial, and construction sectors.<\/p>\n
At the sidelines of his annual consultative meeting with
\nIndonesian President Megawati Soekarnoputri in August,
\nMalaysian Prime Minister Mahathir Mohamad expressed his optimism
\non improving bilateral relations with the Indonesian government
\ndespite the deportation issue.<\/p>\n
Meanwhile, bilateral trade has been growing at a strong pace,
\nin spite of the 1997 economic crisis that plunged Indonesia into
\nturmoil.<\/p>\n
\"In fact, Indonesia is our biggest trading partner in the
\nASEAN (Association of Southeast Asian Nations) region, and our
\ntrade with Indonesia increased even during the crisis period,\"
\nMalaysia's Minister of International Trade and Industry Rafidah
\nAziz told the Post at her office in Kuala Lumpur.<\/p>\n
The total value of bilateral trade in 2001 was US$3.8 billion,
\nan improvement on the trade value in 2000, which stood at US$3.1
\nbillion. Indonesian exports to Malaysia in 2001 were recorded at
\nUS$2.2 billion, or around 4 percent of Indonesia's total exports
\nthat year, worth US$56.03 billion.<\/p>\n
Bilateral trade with Malaysia has always been in Indonesia's
\nfavor. For example, Indonesia enjoyed a trade surplus of US$600
\nmillion in 2001 and US$540 million in 2000. Jakarta expects
\nexports to Kuala Lumpur will increase this year.<\/p>\n
On the investment side, Malaysian investors -- whose total
\ninvestments in Indonesia since 1967 cumulatively amount to US$9.1
\nbillion -- come to Indonesia given the availability of land for
\npalm oil plantations, cheap assets and labor.<\/p>\n
Unfortunately, confusion and uncertainty arising from the
\nnewly introduced regional autonomy laws, as well as exorbitant
\nland claims and high compensation sought by Indonesian villagers,
\nhave forced a number of Malaysian investors to raise their
\neyebrows and adopt a cautious stance.<\/p>\n
A few investors, however, could not hold off their plan, as in
\nthe case of the Bank Niaga deal.<\/p>\n
Malaysia's Commerce Asset Holding Berhad, one of the country's
\nleading financial conglomerates, purchased on Nov. 8 a majority
\nstake in Indonesia's Bank Niaga for Rp 1.05 trillion (US$114
\nmillion) from the Indonesian Bank Restructuring Agency.<\/p>\n
As signatories of the ASEAN Treaty of Amity and Cooperation --
\nwhich advocates the principles of non-interference in each
\nother's internal affairs -- Malaysia and Indonesia have agreed
\nthat, should they be involved in a particular dispute, they would
\nresolve the issue peacefully and amicably.<\/p>\n
A case in point is the territorial issue surrounding the
\nLigitan-Sipadan Islands, which are claimed by both Jakarta and
\nKuala Lumpur.<\/p>\n
\"...Because of the respect we have for each other, we agreed
\nthat the dispute should be settled through the ICJ (International
\nCourt of Justice), which will give its judgment at the end of
\nthis month,\" Hamid Albar said, affirming that Malaysia-Indonesia
\nties are strongly cemented in line with the ASEAN spirit. But
\nIndonesia's Foreign Minister Hassan Wirajuda said Tuesday that
\nthe decision regarding the above issue is expected in mid
\nDecember.<\/p>\n
The writer was in Malaysia recently at the invitation of the
\nMalaysian Institute of Strategic and International Studies in
\nKuala Lumpur.<\/p>",
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