RI still important to Dutch<\/p>\n
By Mohammad Sadli<\/p>\n
The following is the reflection of a one-week visit to Holland
\nfor the conferment of an honorary doctorate, by the Erasmus
\nUniversity in Rotterdam, on Prof. Sumitro Djojohadikusumo,
\nIndonesia's most senior and prominent economist.<\/p>\n
Rotterdam (JP): During the week Nov. 4 to Nov. 10, 1995, there
\nwere numerous opportunities to meet with the Dutch community.<\/p>\n
Preceding the ceremony of bestowing an honorary doctorate on
\nProf. Sumitro, Prof. S. Cnossen of Erasmus University organized a
\nseminar on Indonesia's economy. Drs. Martin Sanders of the
\nAmsterdam Indonesia House and Indonesia Netherlands Association
\norganized another two meetings, which were attended by a fair
\namount of Dutch and Indonesian participants, such as
\nbusinesspeople, academics and students.<\/p>\n
Indonesian board members of the Indonesia-Netherlands Forum,
\nwho accompanied Prof. Sumitro, also used the opportunity to meet
\nwith their Dutch counterparts, including Messrs. Bukman, Deetman,
\nBrinkhorst and Loudon.<\/p>\n
The first impression gained in Holland was that there seemed
\nto be considerable interest shown toward Indonesia. Historical
\nties and nostalgia are part of the reason, while another part is
\ngenuine business interest.<\/p>\n
In Holland's official foreign policy Southeast Asia (including
\nChina) is a declared priority field because it is the most
\npromising region in the world in which to do business. On Nov. 10
\nthere was a conference on China, followed by one on Indonesia,
\nboth held at the same conference hall of the Kamer van Koophandel
\nin Amsterdam.<\/p>\n
The Dutch like to present their country as a \"gateway into the
\nEuropean market\", because approximately 70 percent of Indonesia's
\nexports to Europe pass through Rotterdam's harbor. Moreover,
\nSchiphol is a very important transit point for air cargo. One
\nIndonesian idea relates to adding value by using the area around
\nRotterdam and Schiphol as a site for further processing of
\nIndonesian goods.<\/p>\n
To get an idea of what would be possible, a small survey could
\nreveal what Indonesian competitors have already done. Our Thai
\nbrothers, for instance, who used to be ahead of Indonesia in the
\nexport business. Food processing and various assembly operations,
\nlike furniture, come to mind. The large Indonesian, Indo-Dutch
\nand other Asian communities living in Holland should be invoked
\nto strengthen the new ties.<\/p>\n
Reciprocating, the Dutch like to portray Indonesia as a
\n\"gateway into the ASEAN market and beyond\". Apart from the
\nemotional, or goodwill, content of such a proposition, the
\nrelative ease with which Dutch people move around Indonesia may
\nbe an incentive for the location of Dutch ventures trying to get
\na share of the beckoning Asian market. In the decades to come,
\nthe Indonesian market will be of formidable size, with always
\nsome protection, if only because of transport costs.<\/p>\n
In the 1970s and 1980s, Singapore was a more sensible location
\nfor an \"export platform\", as exemplified by the choice of
\nPhilips. But Singapore is running out of labor and land for
\nmanufacturing sites, and we have seen recently the big Japanese
\nelectronic firms moving into Jakarta's new industrial estates.<\/p>\n
A number of Singapore assembly and manufacturing operations
\nhave also made expansions into the Batam industrial area, which
\nis Indonesian territory adjacent to Singapore. Batam island is
\npart of the Singapore-Johor-Riau \"growth triangle\", a relatively
\nnew political-administrative concept of cross-border locations
\nfor industries and other businesses with incentives in the nature
\nof fiscal and administrative.<\/p>\n
There will be more growth triangles in the ASEAN region, but
\nthe host countries will have to see to it that some domestic
\nrules are loosened; the idea is to create some kind of an ASEAN
\nregime, or its forerunner. Meanwhile, Jakarta and Surabaya
\nlocations (for example industrial estates) are still better,
\ncertainly to access the domestic market.<\/p>\n
Interest was shown at those Holland meetings for the
\nestablishment, in Indonesia, of Dutch high-tech companies
\ninterested in the Southeast Asian market. They have never worked
\nin Asia and, of course, they could consider other country
\nlocations. But the historical ties with Indonesia certainly puts
\nthis country high on the list.<\/p>\n
There is a visible a-symmetry in the feelings or sentiments in
\nHolland and Indonesia. In Holland there is some nostalgic feeling
\ntowards its old colony and a renewed interest is shared by old
\nand young.<\/p>\n
Not so in Indonesia, where the nostalgia is strong among the
\nolder generation. For Indonesia's younger generation Holland does
\nnot have a special meaning relevant to their present and future.
\nThey do not speak or understand Dutch.<\/p>\n
The children and grandson of Prof. Sumitro were terribly bored
\nattending the two hours Dies Natalis ceremony, where their
\npatriarch received his ribbon and diploma in a solemn ceremony in
\na packed auditorium.<\/p>\n
As a university event, Dutch was used, sprinkled with
\ngreetings spoken in good Indonesian by the promoter of the
\nhonorary degree, Prof. Cnossen. A gamelan was provided by the
\nIndonesian Embassy and played, in part, by the Dutch Leidenaars,
\nproviding the right ambience.<\/p>\n
Nevertheless, those young guests from Indonesia were bored
\nstiff having to sit through a dies rede (Dies Natalis scientific
\noration by a professor) of half an hour. They didn't understand a
\nword, including Prof. Cnossen's laudatory oration and Prof.
\nSumitro's acceptance speech, but they sat in awe during the
\nceremony.<\/p>\n
For the older generation, Holland is a favorite entry point
\ninto Europe, but Indonesia's younger generation prefer to go to
\nthe U.S., Japan or Australia.<\/p>\n
Prof. Dorodjatun Koentjarajakti, Dean of the Economic Faculty
\nin the University of Indonesia, who came along to honor the dean
\nof Indonesian economists, said in one of the meetings that, in
\nthe future, Indonesia would not feel comfortable if the economy
\nwere dominated by large Asian countries, and that Europe would be
\nvery welcome, to provide a better balance.<\/p>\n
The sentiments expressed by Prof. Dorodjatun echo those of the
\n(non-Dutch speaking) younger generation. For him, this journey
\nwas only his second visit to Holland after some 20 years.<\/p>\n
He says he would love to escort a group of young Indonesian
\nbusinesspeople on a \"discovery tour of Holland\". These younger
\nbusinesspeople should know Holland better and make good use of
\nits tremendous goodwill, for Southeast Asia and Indonesia in
\nparticular.<\/p>\n
The writer is a prominent economist and served as member of
\nthe cabinet several times.<\/p>\n
Window: If for the older generation Holland is a favorite entry
\npoint into Europe, the younger Indonesia's generation prefer to
\ngo to the U.S., Japan or Australia.<\/p>",
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