Country Profile: Italy -- June 2

Country Profile: Italy -- June 2

Message from the Italian Ambassador to Indonesia

H.E. Francesco M. Greco
on the occasion of Italian National Day
June 2, 2004

Italian National Day marks the anniversary of June 2, 1946,
the day on which, through a historical referendum, the people of
Italy opted for a republic as its form of government, thus
turning the page on dictatorship and the horrors of war.

It is also the ideal moment to assess the state of relations
between Italy and Indonesia, as we regularly do every year, in
the pages of this prestigious newspaper.

Another year has passed, a year in which Indonesia finds
itself facing a historical electoral challenge, confirming its
democratic path, which has been painfully but steadily undertaken
since the political and economic crisis of 1997 to 1998.

For Italy, it is a year that marked -- also thanks to the
presidency of the European Union Council it held until the end of
2003 -- a further, positive step toward closer relations with
Indonesia.

During our European presidency, we firmly committed to favor
dialog at all levels between Europe and Indonesia. Seminars and
public debates were co-organized by the presidency, the
Delegation of the European Commission and the Indonesian Ministry
of Foreign Affairs with the aim of fostering better knowledge and
understanding between Europe and Indonesia.

Universities, think tanks, research institutions and the media
were involved in this effort. Trade opportunities, access to the
European market and the enlargement of Europe were among the main
topics touched by these meetings.

But I would especially like to recall two important events
held within the framework of the Asia-Europe Meeting (ASEM) --
the dialog forum of Asian and European countries -- in Bali in
2003. This beautiful island, the location of a brutal terrorist
attack that hit the tourist site on Oct. 12, 2002, has also
become the symbol of the Indonesian government's strong
determination to fight terrorism.

On July 4 and July 5, 2003, Italian Vice Minister of Finance
the Hon. Magri copresided on behalf of Europe the ASEM Finance
Ministers' summit. On July 24 and July 25, Italian Minister of
Foreign Affairs Franco Frattini copresided with Indonesian
Foreign Minister Hassan Wirajuda the ASEM Foreign Ministers'
summit.

These two important events denote a most significant step in
the dialog between Southeast Asia and Europe, by means of which
we launched the basis for an authentic partnership between two of
the world's areas of major political and economic importance.

Furthermore, at the Bali ASEM Foreign Ministers' summit,
Minister Frattini and Minister Wirajuda had a long and fruitful
bilateral meeting, thus providing the opportunity of discussing
our countries' main issues of interest, which confirms the very
favorable course of our relationship, after President Megawati's
visit to Rome for the Food and Agriculture Organization (FAO)
summit in 2002.

On Aug. 5, 2003, Jakarta was again hit by a terrorist attack,
which again made Indonesia the center of the world's attention.
In this case, our country, as it did following the Bali bomb
attack , reacted calmly and fully trusted in the efficient way
the Indonesian government responded to the terrorism.

Missions from Italy in the fields of trade, culture, science
and technology took place as scheduled, and we also 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 are confident that the country, by applying
all democratic means, will be able to overcome the difficulties.

The relations between Italy and Indonesia in all sectors are
very favorable and have been further consolidated this year. The
countries are engaged in a regular high-level political dialog,
including the meeting of directors general of the two foreign
ministries.

As far as cooperation in technology and military equipment is
concerned, a bilateral agreement was signed in 1997 and the first
session of the ad hoc joint committee took place in 2003, opening
new and wide opportunities for stronger collaboration in the
sector.

Economic and commercial relations continue to progress
steadily. On this very same page, the Italian trade commissioner
in Jakarta provides the data on the numbers and the composition
of this trade exchange. He also underlines 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.

Economic and commercial cooperation between the two countries
has been established since the establishment the Italian Trade
Commission opened its office in Indonesia in 1981. The
possibility of further collaboration remains promising.
Nevertheless, we consider it as particularly encouraging that
large Italian companies have returned to Indonesia and are
definitely here to stay. Proof of this is the presence of
companies that have generously sponsored this page. Some are
those whose presence dates from long ago, while others are more
recent, but still represent the confirmation of the extraordinary
potential offered by this country.

It is also, however, a confirmation of the fact that Indonesia
represents for Italy and its production system, a strategic
choice. It is a huge market, in an area of the world (Southeast
Asia), that is far from Italy but where many in Italy deem it
wise to invest and take root. As the representative of a country
that has long since made the strategic choice of the
internationalization of its proper economy, I have always
undertaken the effort to transmit the message to my authorities
about the immense potential of investing in Indonesia. And I am
confident that Indonesia will be able to promote the general
improvement of its investment climate and that this will be the
main sector of intervention by the government. The Indonesian
people -- via the actual, historical, electoral process -- are
democratically entrusting it with the responsibility of governing
the country.

Italy continues to demonstrate her support of the development
of Indonesia. Last year, we launched our development-support
program for Indonesian small and medium enterprises. The
assistance program includes the provision of a soft loan worth
5.5 million euros to help develop a Footwear Training Center in
Sidoarjo, East Java.

The Indonesian government has launched a tender for the
operation of the center, which we hope will start running in the
course of this year.

It is a sector in which Italian know-how is renowned
worldwide. While, in this country, it has great production
development and it highly labor intensive. Thus, we are sure the
center will be of great benefit.

However, Italian support of Indonesian development is far-
reaching. As stated in the last meeting of the Consultative Group
on Indonesia (CGI) in December 2003, Italy praises the remarkable
progress accomplished by Indonesia in the macroeconomic field
with the implementation of structural economic reforms toward
stability, as announced by the government in its important
strategy document, the White Paper.

In that framework, on Dec. 4, 2003, Italy -- as a member of
the Paris Club -- and Indonesia, have finalized the procedure for
the rescheduling of a further tranche of bilateral debt of
Indonesia for an amount of over US$30 million. It was the fourth
Bilateral Agreement in this field. As an immediate follow-up to
this agreement, we have established contact with the Office of
the Coordinating Minister for the Economy of Indonesia for a
debt-swap agreement, which would allow Indonesia to implement
social-development and environmentally friendly projects. We
believe that this is a significant contribution to the
development of Indonesia and -- as an implementation of Italy's
general policy toward debt relief, which recently led to the
total cancellation of the debts of many poor countries to us --
it represents a concrete sign of the attention we pay to the
welfare of Indonesia, and to its inhabitants, especially the most
vulnerable ones.

In the cultural field, the Italian Cultural Center in Jakarta
(Istituto Italiano di Cultura) continues to intensively promote
cultural activities, with the aim of improving 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, 170 students in Jakarta are taking part in Italian
language courses, proof of the increasing interest of Indonesian
students, and the public in general, toward our language and
culture.

To respond to this demand, 166 months of scholarships to learn
our language have been granted to Indonesian students, in both
2003 and 2004. Moreover, a series of intensive seminars and
workshops in the framework of bilateral agreements on the
scientific and technological field, have also been held to
explore further cooperation in this fundamental and strategic
sector.

Our mission is of important significance: in brief, we must
seek to diminish the distance that still interferes in the
establishment of a better understanding between our two
countries, our systems, our cultures.

Information and technology, beneficial tools of the global
world, are on our side, assisting us in attaining this goal. It
is, therefore, up to us to exploit them for our mutual advantage,
enhancing the values of our society, namely democracy, peace and
liberty. Indonesia is currently achieving a steady progress
toward political stabilization, and it represents an appreciated
model of a peaceful and multiethnic society.

Italy is looking forward to seeing the consolidation of the
constitutional reforms and the implementation of reconciliation
processes within a united and peaceful Indonesia. The steady
continuation of this path will allow Indonesia 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 her own history, her culture and geographical
position oblige her - even more than permit her - to intensify
her role as an ideal bridge between East and West. This is the
spirit with which we look at Indonesia, with utmost trust in her
capacity to continue in the path toward consolidating democracy.
In its elections year, this country is going through a paramount
test. The process that Indonesia is undergoing this year has
been, so far, a model for the whole world.