Conference on SMEs hears call for new Colombo Plan

By Rob Goodfellow

WOLLONGONG, Australia (JP): Speaking at a conference on small and medium enterprises (SMEs) in the global economy here last month, Charles Harvey of the Department of Economics at the University of Wollongong noted that the conference was an important opportunity to focus on the economic recovery of the region, and the crucial role that small to medium enterprises will play in this process.

Prof. Harvey's theme was echoed by a number of high-ranking Indonesian presenters, including Martani Huseini and Azhar Kasim from the University of Indonesia and Utama Kajo, international economist and deputy chairman of the Indonesian Chamber of Commerce and Industry.

Utama in particular stressed to delegates the importance of bilateral, multilevel cooperation between Australia and Indonesia, not merely because the two are neighbors, but because they are key participants in ensuring the general peace and prosperity of the entire region.

Utama commented, "I am not talking about interdependency, but a complimentary approach to each others strengths and needs. Australia is a knowledge nation. For example it has one of the most sophisticated, efficient and organized agricultural sectors in the world.

"Indonesia has a population of 215 million. One of our greatest needs is to modernize our agricultural industries. To do this we need a broad range of skills and expertise. Our goal is to address issues of self-sufficiency.

"To do this we must buy-in advanced food production technology. Australia is ideally placed to not only trade this technology, but to train Indonesians in a wide range of related fields -- from production techniques and distribution expertise to human and physical infrastructure reform.

"What I mean is everything from agribusiness systems to good governance programs. Australian business should know that Indonesian small to medium enterprises are prepared to pay for this.

"As our economy improves, as confidence returns, as policy predicability, bureaucratic transparency and the rule of law become part of our sociopolitical landscape, I am confident that Australian SMEs, in partnership with universities like Wollongong, which have the skills and technologies Indonesia needs, will seize these opportunities."

Utama went on to describe how engagement might be strengthened. "What we need", he commented, "is a clear understanding of the way we both do things. To do this we have to strengthen relations on a person-to-person basis. We need something like a new Colombo Plan.

"In the immediate post-World War II period, Australia funded large numbers of students from the public sector to live and study in Australia. Through this opportunity, Southeast Asians developed a genuine love for the Australian lifestyle and people. This respect for Australia meant that several generations of senior policy planners and government leaders from across the region were indebted to Australia."

Utama's comments raised an interesting question. Why not reinvent and extend this program to include private sector businesspeople from SMEs along with students?

Martin O'Shannessy, managing director of Australian-based IRIS Research, suggested that "this could include both short-term trade and industry workplace training, as well as undergraduate tuition and postgraduate research. The long-term benefits to both countries would be enormous. This could be achieved at a fraction of the cost to the Australian taxpayer of the INTERFET mission".

"Many of my Indonesian friends who have been educated in Australia and have had children here during their time of study have established genuine and lasting friendships. My friend Dr. Muhammad Akyar Adnan from the Islamic University of Indonesia in Yogyakarta is a good example. He and his wife had two children here -- one during his MBA Program and one while he was researching his PhD. He has taken this love for Australia back to Indonesia. People like Dr. Adnan continue this relationship as part of a regional network of trade and business," O'Shannessy said.

John Glynn of the prestigious Sydney Business School/University of Wollongong said: "Even now very few countries can compete with Indonesian small to medium enterprises on a cost or skill basis. Imagine if institutionalized corruption was eliminated. Some estimates suggest that Indonesia could gain efficiencies of 25 to 30 percent.

"In the West, businesses have to undertake major restructuring for 2 to 5 percent efficiency gains. Indonesia is in a very good position. Indonesians have every reason to be optimistic about the future. And Australia is in the best possible position to help their neighbor reach what I see as the potential to become the fifth strongest manufacturing economy in the world within 20 years".

Gynn commented, "Dr. Utama's idea should be seriously considered by Prime Minister John Howard. Perhaps this is something President (Abdurrahman) Wahid could raise when he visits Australia."

The writer, a social researcher and Indonesian cultural consultant to Western businesses, is based at the University of Wollongong, Australia (sujoko@ozemail.com.au).