Country Profile:
Country Profile:
Part -1
Italian ambassador Dr. Francesco M. Greco: Come and invest in Indonesia
It is my privilege to assess the state of the relations between Italy and Indonesia, as we regularly do every year, through this prestigious newspaper.
The occasion is offered to me, once again, by the celebration of Italy's National Day, which marks the anniversary of June 2, 1946, the day on which, through a historical referendum, the people of Italy opted for a Republican form of State and turned the page on dictatorship and the horrors of war.
Another year has passed -- an historical year for Indonesia. It started with a crucial election process and it ended with the tragedy of the natural catastrophe that hit Aceh and North Sumatra on December 26.
With last year's electoral process, Indonesia has democratically chosen its new parliament and its new president, which was - for the first time - directly and peacefully elected by the Indonesian people.
This historical electoral challenge - witnessed with admiration by the entire world - confirmed that Indonesia is as firmly as ever on a democratic path; one that has been painfully but steadily undertaken after the political and economic crisis of 1997-1998.
Today, at least from a political point of view, we can say that the gloomy days of the crisis are definitively over: political stability and the affirmation of democratic values are now "recognized trademarks" in Indonesia.
Unfortunately, last year, Jakarta was once more the scene of a terrorist attack that once again brought Indonesia to the center of world attention. But Italy, as it did in all previous occasions (during the Bali as well as during the Marriot Hotel bomb attacks), reacted calmly and expressed its full trust in the efficiency by which the terrorist threats are being fought in this country.
Missions from Italy in all fields -- trade, culture, science and technology -- took place regularly and we did not feel the need to modify our Indonesia travel advice. Our trust in Indonesia, its authorities and especially its people, remain unshakeable and we believe that the country, by applying all democratic means, will be able to overcome the difficulties posed by its enemies.
I am glad to stress, once again, that relations between Italy and Indonesia in all sectors remain extremely favorable. The highest political figures of the two countries met in recent months on several occasions, in Jakarta, in Rome and in other capitals on the margins of important policy dialogue forums, such as the Asia-Europe Meeting (ASEM) in Hanoi and Kyoto.
As far as cooperation in technology and military equipment is concerned, after the bilateral agreement signed in 1997 and the First Session of the ad hoc Joint Committee that took place in 2003, new and wide opportunities for stronger collaboration can be disclosed.
Economic and commercial relations continue to progress steadily. On this very same page, the Italian Trade Commissioner in Jakarta provides data on the numbers and composition of this trade exchange, underlining the growing opportunities that Italy offers to Indonesian businesses interested in acquainting themselves with the Italian market and in increasing the possibility of economic and commercial cooperation with our Country.
Italy and Indonesia are economic-commercial partners of old, with the Italian Trade Commission opening its office in Indonesia back in 1981. Big Italian companies have recently returned to Indonesia and are definitely here to stay. Proof of this is the presence of companies that have generously sponsored this page.
Some have been here for a long time; others have come more recently. But they all represent proof of the extraordinary potential offered by this country.
Nowadays, Indonesia represents for Italy and its production system a strategic choice. It is a huge market, in an area of the world (Southeast Asia) where - in spite of its physical distance from Italy - many of my fellow citizens deem it wise to invest and take root.
And this simply reconfirms the validity of our usual and well- known message to the Italian business community: come and invest in Indonesia, bearing in mind the immense potential of this market, and contribute to the enhancement of bilateral relations, towards a better understanding between our two peoples, and for the welfare of the Indonesian population.
We always insist, on the other hand, on the necessity of a more tangible improvement in its investment climate, at the same time recognizing the effort that has already been put in place by the new government in this particular field.
Long before the tsunami hit Aceh on Dec. 26, Italy showed its continuous support for the development of Indonesia. The local private sector, and particularly Small and Medium Enterprises (SMEs) remain the main focus of our attention.
After Dec. 26, our support for Indonesia became as tangible as ever. As a response to the disaster, Italy decided to put in place a full-fledged aid package.
Financial aid
First of all, from the financial point of view, we immediately decided to directly contribute to Indonesia's budget and to accelerate the negotiations for a "debt for development" agreement. We also decided, along with the Indonesian authorities, to concentrate our resources (approximately US$31 million) in the tsunami hit areas; the framework agreement was signed in Jakarta on March 9, 2005 by the Indonesian Minister of Foreign Affairs H.E. Dr. Hassan Wirayuda and the Italian Minister of State for Foreign Affairs H.E. Mrs. Margherita Boniver.
The agreement will allow Indonesia to implement social development and environmental friendly projects with those resources for the next 5 years.
Furthermore, as a result of the visit in Rome (Jan. 9, 2005) of Foreign Minister Wirayuda and his meetings with the Italian Deputy Prime Minister and Foreign Minister Fini and with the Italian Minister of Economy Siniscalco, we are now evaluating the modalities of a further debt swap for commercial loans worth about 15 million euros. Italy also decided to cosponsor a moratorium for the repayment of the contracted debt within the Paris Club, which was recently accepted by Indonesia.
Secondly, as a response to the UN "Flash Appeal" launched in Jakarta on Jan. 7, a contribution to the region for 16 million euros has been committed. This amount is for various projects to be implemented through UN Agencies. The first initiatives -- such as those through the Food and Agriculture Organization (FAO), the International Organization for Migration (IOM) and the World Health Organization (WHO) -- are about to kick off.
Thirdly, a total amount of 10 million euros has been allocated for bilateral initiatives to be carried out through the Italian Development Cooperation Offices in Jakarta, Banda Aceh and Bireuen, also a part of Aceh province. Those initiatives are multisectorial; covering health, education and support for vulnerable populations, as well as agriculture, fisheries and housing. These will be implemented with the involvement of the concerned Indonesian authorities and the local community.
Finally, various Italian stakeholders (Universities, foundations, NGOs, local governments) are coordinated by the Italian ministry of foreign affairs as far as their own contributions to the tsunami-hit region are concerned. Among them, several universities have already carried out studies for possible cooperation, in some cases contemplating the possibility of providing scholarships.
We believe Italy was able to put in place a full-fledged aid program in a short time and in an effective way and we are proud to be so committed, along with the rest of the international community, to the recovery of the affected region and to its prompt reinsertion into a peaceful, democratic and united Indonesia.
The excellent relations already existing in the cultural field have been further improving. The Italian Cultural Center in Jakarta (Istituto Italiano di Cultura) continues to intensively promote cultural activities, with the aim to improve knowledge of the Italian language and culture among the Indonesian people.
These activities take place in Jakarta and in Indonesia's major cities, through Italian language courses organized at the Institute itself, with the involvement of Indonesian Universities.
This year, over a hundred students in Jakarta are taking Italian language courses, proof of the increasing interest that our language and culture attract from the public and students of this country. To respond to this demand, a new batch of scholarships (over 200) for studying in major Italian universities in being granted (for the third time) to Indonesian students or graduates. Moreover, a series of intensive seminars and workshops in the framework of bilateral agreements within the scientific and technological field, have facilitated in-depth discussions - in this fundamental and strategic sector - on the wide range of possibilities of cooperation between our two countries.
We must enhance the values that are common to our societies, namely democracy, peace and liberty. Indonesia has become a recognized model of a peaceful and multiethnic society; the steady continuation of this path will allow this country to consolidate its role as a solid partner of Europe, which deserves to be recognized within Asia and more generally, in the Islamic world. Italy feels that its own history, its culture and its geographical position oblige her - even more than permit her - to intensify her role of an ideal bridge between East and West. This is the spirit by which we look at Indonesia, at its glorious past and even more at its bright future.