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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