Indonesian Political, Business & Finance News

This article is provided by the Japanese embassy

This article is provided by the Japanese embassy

The Ambassador's View on Bilateral Relations

Question: What impression have you gained when you look back at
the period of four months after your arrival in Indonesia to take
up your assignment?

Answer : After taking up my duty here, I held a series of talks
with high ranking figures of the Indonesian Government, including
President Megawati. I heard about the efforts made by the
Megawati Government toward the reform and democratization. Now
Indonesia, while facing various problems, is in the middle of the
transition where it promotes reforms in a wide range of fields
such as political and economic. Japan is determined to spare no
efforts in giving its continued assistance for further reform in
Indonesia.

The Bali bomb terror in October has claimed many victims,
including Japanese. Terrorism is a mean and inexcusable act that
targets innocent people. Japan, in cooperation with the
Indonesian Government, seriously fights against terrorism in
order that it never reoccurs. Bali is one of the most favored
tourist locations by the Japanese people, and I certainly hope
that Bali and Indonesia will recover soon from shocks caused by
the incident. Japan is going to stand by the recovery process as
much as possible.

On Dec. 9, the agreement for cessation of hostilities was
signed as a first step toward realization of peace in Aceh.
Before the agreement, Japan cosponsored the Preparatory
Conference on Peace and Reconstruction in Aceh in Tokyo with the
U.S., the World Bank and the EU on Dec. 3. This is one of the
most impressive aspects, which 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. For example,
Indonesia has an important role in Japanese marine transport and
is one of the largest suppliers of oil and natural gas for 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
stability and development of the Indonesian economy. Among the
many countries which Japan provides the bilateral ODA, Indonesia
receives the largest amount as seen in the amount obtained in
2000 (total about US$970 million), and the total given by Japan
up to now (total more than US$17.3 billion). On the other hand,
in the bilateral ODA that Indonesia receives from foreign
countries, the ODA from Japan constitutes 60 percent of the whole
amount. It is the highest amount.

Now, more than 11,000 Japanese are living and 1,500 Japanese
enterprises are operating in Indonesia, making a considerable
contribution to the Indonesian economy. A number of Japanese have
established small and middle scale enterprises here, where they
are sharing the joys and sorrows with their Indonesian partners.

Meanwhile some Japanese NGOs based here are conducting
activities; for example, poverty improvement and emergency aid in
disaster stricken districts. Not only young Japanese are active
in such volunteer work but also well experienced and mature
Japanese. Meanwhile, regarding educational exchange, many
Indonesian students are studying in Japan and the number of the
students who have studied there is more than 8,000. They
contribute to the development of Indonesia in various fields and
act as a bridge between Japan and Indonesia. The bilateral
relations are expanding and developing to such an extent
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 given by Japan covers a wide-ranging scope of
fields. For example, Japan gives its assistance for the
construction and equipping of facilities necessary for daily life
such as water supply, electricity, and telephone and
infrastructure such as roads, railways, airport etc. Assistance
is also extended for elementary education, such as equipping
elementary schools, developing teaching materials in basic
education, for higher education and the support of middle and
small scale enterprises which aim at the development of human
resources for industry development. Activities of experts who
support such assistance might not be visibly obvious but the
results steadily contribute to and benefit the lives of the
people.

Apart from that, assistance is given for measures to deal with
natural disasters and environment protection, agriculture and
fisheries for stable food supplies, enhanced medical services and
welfare etc. Such Japanese assistance is providing a contribution
both openly and privately to the development of Indonesia.

Along with such large scale efforts, the government of Japan also
provides direct financial assistance to the welfare of the people
in the form of a small scale assistance program named Grassroots
Grant Assistance which is given through NGOs.

Through its comprehensive economic cooperation, Japan contributes
considerably to the increased living standard of the Indonesian
people.

What is ASEAN- Japan Exchange Year 2003?

On the occasion of his visit to ASEAN countries in January 2002,
Prime Minister Koizumi proposed the concept of "walk together,
advance together" as a "frank partner", and put forth the idea of
cooperation for "prosperity", "stability" and "future". As part
of the "cooperation for the future", year 2003 is designated as
the ASEAN-Japan Exchange Year, and it is proposed that exchanges
be facilitated not only in cultural and intellectual fields but
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 brought
about a great impact upon Indonesia, both in political and
economic fields. The Indonesian Government has been steadily
making efforts against terrorism. On the other hand, however,
Indonesia is also experiencing reforms of democratization and
regional autonomy. I am convinced that steady realization of the
reform could further enhance international trust upon Indonesia,
which would eventually lead to the recovery of the Indonesian
economy.

Furthermore, for the economy, it is necessary to implement a
continued reform 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 the conditions for investment.

Stability is obviously important for improving the quality of
life and counts for the development in Indonesia. At the same
time, it is closely related to the development of Southeast Asia.
With this perspective in mind, Japan, with the U.S. and others,
cosponsored the Preparatory Conference on Peace and
Reconstruction in Aceh on 3 December in Tokyo.

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

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

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