Businesspeople form backbone of RI's Korean community

Businesspeople form backbone of RI's Korean community

As part of The Jakarta Post's community coverage, this month,
we are focusing on the Korean community. In an effort to inform
our readers about this growing community in the country, the
Post's Veeramalla Anjaiah talked to the South Korean Ambassador
to Indonesia, Yun Hai-jung. The following is an excerpt of that
interview.

Question: Your Excellency, how big is the Korean community in
Indonesia?

Answer: Indonesia and the Republic of Korea (the official name
of South Korea) established official relations first at the
consular level in 1966. Later on in 1973, both countries agreed
to upgrade their relations to full diplomatic ties on Sept. 18,
1973. Thus, our relationship is now more than 30 years old. The
early settlements of Korean people here began with the
establishment of these diplomatic relations 30 years ago.

At present, there are about 30,000 Koreans living in
Indonesia. Most of the Korean people are living in Jakarta with
some others scattered in major cities: Surabaya (1,200), Bandung
(600), Bali (150) and other areas (550). In addition to that,
annually, about 220,000 Koreans visit Indonesia on business trips
or as tourists.

Could you please throw some light on the origins of the Korean
community here?

During the early 1970s, Korean people started to come to
Indonesia where they opened business mostly in labor-intensive
industry sectors, like textile, garment and shoe factories.

Also in the early 1970s, the Korean economy experienced an
unprecedented boom because of the government's successful first
and second five-year economic development plans. Under these
economic circumstances, Korean businesspeople looked for new
production locations like Indonesia, with its relatively cheap
labor and a huge domestic market.

What are the social and economic activities of the community?

The Korean community in Indonesia is mainly composed of
businesspeople, workers and their families. Therefore, their
social, economic activities are directly interconnected and are
making a great contribution to bilateral economic relations. Some
of them are working at the branch offices of Korean companies,
and others are chief executive officers of their own companies.

Last year, the bilateral trade between our two countries grew
by 16.9 percent compared with the previous year. And the total
trade volume for 2004 exceeded US$10 billion for the first time
after the establishment of bilateral diplomatic relations.

Indonesia is continuously enjoying a trade surplus every year
with us. Such a trade surplus derives mainly from Korea's heavy
imports of crude oil and LNG (Liquefied Natural Gas) from
Indonesia.

Currently, Korea is the fifth-largest trading partner of
Indonesia and Indonesia is our ninth-largest trading partner. I
hope that our bilateral trade continues to grow in line with the
overall development of our economic relations.

What are the Korean organizations in Indonesia and their
activities?

There are many organizations here, like the Korean Association
in Indonesia, Korean Chamber of Commerce in Indonesia, the Korean
Women's Association, the Jakarta International Korean School and
several other smaller social and economic organizations. People
are sharing information, and building networks with the issuance
of various regular news magazines, and promoting friendship and
cooperation among Koreans and Indonesians. The Jakarta
International Korean School with 1,500 students and 122 teachers
is the biggest Korean school internationally. It is making a
great contribution to strengthening Korean society here and
regularly carries out a range of cultural activities.

What is the Korean community's contribution to Indonesia's
economic development?

The Korean community's contribution to Indonesia has two
elements: job creation through direct investment and technical
assistance for development.

Korea's investment in Indonesia has been growing despite
challenges in the country's general economic climate. Last year,
Korea made $4 billion worth of investment in Indonesia, and as of
the end of 2004, the accumulative amount (1967 - 2004) of our
investment to Indonesia totaled about $10.2 billion.

Korea is currently the seventh-largest direct investor in
Indonesia with about 570 companies here and Indonesia is the
third-largest destination for our overseas investment.

These companies have invested in major sectors like textiles,
garments, footwear, toys and electronic and IT related products.
Korean companies employ about 500,000 Indonesian workers, or
equivalent to 0.56 percent of the total Indonesian workforce.

It is very encouraging to note that Korea's investment in
Indonesia has been shifting its focus from traditional labor-
intensive industries to more technology-oriented and capital-
intensive sectors such as IT, telecommunications and electronics.

From 1991 to 2004, the total aid in grants extended to
Indonesia by Korea was $27 million.

In 2004 alone, $5 million was provided for development
projects and since our relationship began, Korea has sent 35
experts and 197 junior experts in different fields (to
Indonesia). Korea has also invited 1,225 Indonesian trainees and
academics for training in Korea. Recently, the $2.8 million
Korea-Indonesia Sports Center project was completed.

By the end of 2004, the total development loans from Korea to
Indonesia reached $160 million for eight projects.

Could you please elaborate on the activities of Korean
Cultural Organizations in Indonesia?

The Korean community in Indonesia is represented by several
cultural organizations, such as the Wolhwa Tea Cultural Center,
the Korean Women's Association, the Indonesia Korean Art
Association, the Jakarta Korean Music Association, Foundation of
Calligraphic Research in Indonesia and others. Fortunately,
within Korean society in Indonesia there have been many people
who are knowledgeable and talented in culture and art, and are
actively engaged in cultural activities. Most of these
organizations hold cultural events every year to preserve and
showcase Korean traditions.

The Wolhwa Tea Cultural Center, for example, contributes to
the Korean residents' leisure activities and is a place for
emotional and spiritual release. It plays the important role of
preserving and at the same time promoting Korean culture through
traditional tea ceremonies and traditional dances.

The Indonesia Korean Art Association, as another example, has
of course, contributed the development of the Korean art and
cultural exchanges between Korean and Indonesian artists.

The Jakarta Korean Music Association has made a contribution
to Indonesia by way of a musical exchange program and has
enriched the lives of Koreans living here, particularly those who
reside in Jakarta.

Last but not least, the role of the Korean Culture and
Information Center operated by the Embassy of the Republic of
Korea is very important. The center is an important source for
information about the modern culture and economy of Korea as well
as the traditional wisdom of our ancestors. It has also supported
the many enthusiastic Korean artists who visit Indonesia.