Indonesian Political, Business & Finance News

Act Together, Advance Together

Act Together, Advance Together

Indonesia not only has a close historic relationship with
Japan, but also maintains close relations in trade and
investment. Below is an interview with Japanese Ambassador Yutoko
Iimura about the Japanese government's commitment to further
assist Indonesia in achieving stability.

Question: What is your impression when you look back at the last
four months since your arrival in Indonesia to take up your
assignment?

Answer : After taking up my duties here, I held a series of talks
with high-ranking figures in the Indonesian government, including
President Megawati. I heard about the efforts made by Megawati's
administration toward reform and democratization. While facing
various problems, Indonesia is in the middle of a transition in
which it promotes reform in a wide range of fields, including
politics and economics. Japan is determined to spare no effort in
giving its continued assistance for further reform in Indonesia.

The Bali bombings in October claimed many victims, including
Japanese. Terrorism is a horrible, inexcusable act that targets
innocent people. Japan, in cooperation with the Indonesian
government, is determined to continue its fight against terrorism
so that it does not reoccur. Bali is considered to be one of the
most favored tourist destinations by the Japanese, and I
certainly hope that Bali and Indonesia will recover soon from the
shock caused by the incident. Japan is going to help in the
recovery process as much as possible.

On Dec. 9, the agreement for the cessation of hostilities was
signed as a first step toward the realization of peace in Aceh.
Before the agreement, Japan co-chaired the Preparatory Conference
on Peace and Reconstruction in Aceh with the U.S., the World Bank
and the EU on Dec. 3 in Tokyo. This is one of the most impressive
aspects, and it demonstrates the deep and wide range of
cooperation between Japan and Indonesia.

What do you think about bilateral relations?

Indonesia, as one of our neighboring countries, not only has a
close historic relationship with Japan, but also maintains close
relations in the present trade and investment arena. For example,
Indonesia plays an important role in Japanese marine
transportation and is one of the largest suppliers of oil and
natural gas to Japan. With its population of over 200 million,
Indonesia, as a core country of ASEAN, plays a key role in the
economic development and stability of Southeast Asia.

Japan has continued the economic cooperation for the sake of the
Indonesian economy's stability and development. Among the many
countries which Japan provides bilateral Overseas Development
Assistance (ODA) to, Indonesia receives the largest amount as
seen by the figure granted in 2000, which is about US$970
million, and the total given by Japan so far, which is more than
$17.3 billion. On the other hand, in the bilateral ODA Indonesia
receives from foreign countries, assistance from Japan
constitutes 60 percent of the entire amount. It is the highest
amount.

More than 11,000 Japanese nationals are living in the country
and 1,500 Japanese enterprises are operating in Indonesia, making
their combined efforts a considerable contribution to the
Indonesian economy. A number of Japanese have established small
and middle-scale enterprises here, in which they are sharing the
joys and sorrows with their Indonesian partners.

Meanwhile, some Japanese non-governmental organizations (NGOs)
based here have been conducting activities by, for example,
providing poverty alleviation and emergency aid to disaster-
stricken areas. Not only are young Japanese active in this
volunteer work, but also well-experienced adults. Meanwhile,
regarding the educational exchange, many Indonesian students are
studying in Japan and the amount of students who have studied
there number more than 8,000. They contribute to the development
of Indonesia in various fields and act as a bridge between Japan
and Indonesia. Bilateral relations are expanding and developing
to such an extent that they are surpassing generations and
covering many fields.

Japan is the biggest donor country for Indonesia. How does such
assistance from Japan benefit the Indonesian common people?

The assistance from Japan covers a wide range of fields. For
example, Japan extends its assistance for the construction of the
infrastructure for social life including water supply,
electricity, telephone and transport such as roads, railways, and
airport. Assistance is also extended for primary education such
as the construction of elementary schools and the development of
teaching materials, and for higher education and the support of
small and medium scale enterprises which aim at the development
of human resources for industries. You might not often see the
activities of the experts in those fields but they yield solid
results which improve the lives of the people.

The Japanese cooperation also includes the anti-disaster measures
environment protection, agriculture and fisheries for stable food
supplies, assistance for enhanced health and welfare services.

Along with those large scale assistance, the government of Japan
also provides Grassroots Grant Assistance which is small scale
grant assistance that intends directly to enhance the welfare of
the people through the activities of NGO and other bodies.

By combining its economic cooperation comprehensively, Japan has
been making broad contribution to improving the living standard
of the Indonesian people.

What is the ASEAN-Japan Exchange Year 2003?

On the occasion of his visit to ASEAN countries in January 2002,
Prime Minister Koizumi proposed the concept of "act together,
advance together" as a "frank partner", and put forth the idea of
cooperation for "prosperity, stability and the future". As part
of the "cooperation for the future", year 2003 has been
designated as the ASEAN-Japan Exchange Year, and it is proposed
that exchanges be facilitated not only in cultural and
intellectual fields, but also in a greater scope such as
political, economic, social education, technology and sciences.
This idea has received support from ASEAN. To conduct an exchange
of activities, each country will be designated as a Key
Coordinator in each month of 2003. Indonesia will coordinate July
(Indonesian Month). Therefore, activities in July will be focused
here in Indonesia and, of course, during other months exchange
programs will be held here.

In Medan, Surabaya and Makassar, a number of activities are also
scheduled to take place, and we welcome your active
participation.

Finally, what kind of contribution can Japan provide for the
development of stability, which is vital to Indonesia?

As I mentioned before, the Bali bomb terror in October had a
great impact on Indonesia, both in its political and economic
fields. The Indonesian government has been steadily making
efforts to stop terrorism. On the other hand, however, Indonesia
is also experiencing the reform of democratization and regional
autonomy. I am convinced that the steady realization of reform
can further enhance international trust in Indonesia, which would
eventually lead to the recovery of the Indonesian economy.

Furthermore, for the economy, it is necessary to continue
implementing reforms to step up Indonesia's international
competitiveness by way of fiscal sustainability to solve the
problem of increasing public debt as an aftermath of the economic
crisis and by way of improving conditions for investment.

Stability is obviously important for improving the quality of
life and counts toward Indonesia's development. At the same time,
it is closely related to the development of Southeast Asia.
Keeping this perspective in mind, Japan, with the U.S. and
others, co-sponsored the Preparatory Conference on Peace and
Reconstruction in Aceh on Dec. 3 in Tokyo.

Furthermore, on the occasion of the visit of Prime Minister
Koizumi in January 2002, Japan again made it clear that it would
give assistance for judicial reform, police reform and for middle
and small-scale enterprises, with a view of helping Indonesia
achieve appropriate reform for democratization and regional
autonomy.

With the spirit of "act together, advance together", Japan
continues to assist Indonesia in achieving stability in a more
accelerated form and moving forward powerfully toward
reconstruction.

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