Business and culture meet in Indonesian Moscow tour
By Melanie Morrison
MOSCOW (JP): The Indonesian business community's interest in expanding into Russia was directly reflected by the number of top Indonesian business people at the "Indonesian Culture in Moscow" festival.
Among the faces that appeared at the opening night, after a long day of firming up existing business ties or exploring new business opportunities, were the highly successful Hashim S. Djojohadikusumo, president director of PT. Prima Comexindo (the largest Indonesian company in Russia), Ponco Sutowo and Dewi Motik.
The 22-year-old Indonesian businessman Arya Witoelar, who is the son of Indonesian Ambassador to Russia Rachmat Witoelar, initiated the "Indonesian culture in Moscow" idea. He explained, "I had the idea for the cultural festival because I see cultural understanding as a crucial part of good business relations."
Guided by this belief, the Witoelars and the festival production group Gaung Cipta Semesta approached Indonesian companies already involved in Russia for sponsorship. It was generously provided by PT Prima Comexindo. The Indonesian Chamber of Commerce also sent a delegation of 40 company representatives to seek Russian counterparts for a variety of commercial ventures.
It seems to be a case of "don't miss the boat", as Indonesian business people are anxious to establish themselves in the Russian market. It is in the midst of securing a new economic identity and Indonesia, like many other nations, are racing for their stake in this new identity.
The Americans have already succeeded in infiltrating the market with all-American products such as MacDonalds and Coca- Cola. Russians are hungry for these products and will queue for over an hour just to get a Big Mac.
Yet, while this type of U.S. domination is perhaps inevitable, Ponco Sutowo is hopeful that Indonesia will not be pushed aside by the barrage of American products.
Complementary
"We (Russia and Indonesia) have complementary needs," says Ponco, whose trip to Moscow involved exploring the possibility of building a hotel in the city. Although Ponco is a newcomer on the Russia-Indonesia business scene, he recognizes the huge potential for business links between the two countries.
"The relationship is perfect for reciprocal arrangements, we have many of the natural resources they need and their technological knowledge is high," he says, also noting that Indonesia has a comparative advantage over many Western countries. "We have never been at war with Russia, we are less suspicious and a more acceptable country."
Hashim, who has been involved in trading activities with Russia for almost five years, is also well versed in the business potential. He is, however, also quick to explain the difficulties in doing business in the area. Having experienced the changes in the power base from a communist union to separate states, all searching for their place in the international market, he knows too well the unpredictability of working in this changing environment.
"Logistically, working here since the collapse of communism is a nightmare. In the Soviet days all the links were centralized, now nothing is clear. The work practices here also take a bit of getting used to." On the other hand, Hashim is also aware that with the present move toward greater openness there is a temporary gap, making it easier for a nation like Indonesia to infiltrate the market.
To date, over a half-dozen Indonesian trading companies have established representative offices in Moscow and this number is set to grow as trade obstacles are reduced. The drive to boost trade with Russia was formalized during the festival as business people and diplomats joined together to discuss the formation of a foundation called "Russia House". The purpose of the foundation is to facilitate trade and cultural activities between Russia and Indonesia.
This government, business and cultural triangle is indicative of the new way international links are moving. At the "Russia House" meeting, which took place on Aug. 24 at the Indonesian embassy in Moscow, all parties felt positive that increased dialogue between the different interest groups was the prerequisite to establishing a strong, long-lasting relationship.
The two governments have already agreed to reschedule Indonesia's 20-year debt, initially to be paid in annual US$100 million installments up to the year 2000. The debt will now be repaid by the year 1996, partly through Indonesian exports as Indonesia has an interest in seeing their goods flow into Russia. In this way a niche market can be created in a country where Indonesia sees the utmost potential for future cooperation.
With a new Garuda airlink between Moscow and Jakarta due to be in operation before this October and the foundation of "Russia House", and also plans to bring more cultural and arts groups to Moscow, it seems that the relationship between Russia and Indonesia is well on the way to being solid and strong.