Businesspeople: The 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.