EU-RI relations have potential to grow further

EU-RI relations have potential to grow further

Veeramalla Anjaiah, Bogor, West Java

While the European Union (EU) and Indonesia are already closely
involved, with the EU's historic and biggest enlargement on May
1, 2004, their relationship could become even stronger, several
speakers said in a seminar on the EU last week.

"We have a strong and growing relationship with Indonesia in
many fields: politics, trade, investment, development, economics
and culture. It (the relationship) has strong potential to
develop further," Sabato Della Monica, Ambassador/Head of the
European Commission Delegation in Indonesia said, while opening
the "Information Seminar on the European Union for Indonesian
Journalists" in Bogor, West Java, last week.

Della Monica said there was a need for mutual awareness
between Indonesia and the EU.

"The media plays the role of bridge between the EU and
Indonesia. It should play an active role in disseminating
information about the EU, and Indonesia, vice versa; and to
strengthen relations between the two," Della Monica said.

With its population of 455 million, a common market -- which
is the world's biggest -- a single currency and low tariffs, the
expanded EU would become attractive to Indonesia, Royal Dutch
Ambassador to Indonesia Ruud Treffers, one of the seminar's main
speakers, said. Other speakers included ambassadors including
Austrian Ambassador Bernhard Zimburg and Finnish Ambassador
Markku Ninioja, businessmen, senior journalists from Europe and
Indonesian and EU officials.

"The new members previously used to impose a 9 percent customs
tariff on Indonesian imports. After the expansion, the tariff
decreased to 4 percent. Indonesia benefits from the expansion,"
Treffers, whose country currently holds the EU presidency in
Indonesia, said.

While supporting the view of Treffers, Hungarian Ambassador to
Indonesia Gyorgy Busztin said his country's bilateral trade,
which is at present in the range of US$160 million to $200
million per annum, would improve a lot in the future due to low
tariffs after Hungary joined the EU on MAY 1.

With its 20 percent share in world trade and foreign direct
investment, the EU is an important world player.

"If Indonesia wants to recover, it must have an outbound
economy. The domestic market is not sufficient. It (Indonesia)
has to rely on the world market, including Europe," executive
director of Prasetiya Mulya Business School Djisman Simandjuntak,
another speaker, said.

However, despite Indonesia's market potential, it suffers from
an image problem among European investors.

"The western media portrayed Indonesia in a bad light since
the East Timor crisis in the 1990s. Everyday we have so much bad
news about Indonesia in the international media. Indonesian
journalists must fight this bad propaganda, and the government
must launch a big media campaign to boost the country's image.
Actually, there's no major problem with the business climate
here," said Luigi Carlo, chairman of the Italian Business
Association in Indonesia.

While supporting Carlo's opinion, chairman of the Association
of Southeast Asian Nations (ASEAN) Business Advisory Council Rudy
Pesik said the Indonesian government was slow to promote the
country's image.

"We're not good at promoting ourselves," Rudy said, adding
that the EU could provide a good opportunity for Indonesian
businessmen with its strong euro, better transfer of technology
and low tariffs.

However, Rudy perceived that Indonesian products could face
obstacles with the EU's high standards, environmental issues, and
strict visa policies.

As the world's largest exporter and second largest importer,
the EU could potentially absorb most of Indonesia's exports.

The EU -- which was formed on the basis of certain ideals,
such as democracy, human rights, openness in trade, environmental
concerns and so on -- could contribute to the development of
democracy here.

Through its executive arm the European Commission (EC), the EU
has already made serious efforts to strengthen democratic
institutions, promote human rights, protect the environment, and
work toward conflict resolutions in Indonesia.

The EU's most successful projects in Indonesia were the Leuser
Development Program and the recent election monitoring team.

Under a five-year cooperation agreement (2002-2006) signed
between Indonesia and the EU, the EC has provided a grant of 50
million euros every year.

"The EC had provided 15 million euros for education, 10
million euros to the trade sector and another 10 million for
judicial reform," the Political Counselor at the Delegation of
the European Commission to Indonesia Ulrich Eckle said.

"We are providing assistance to the Indonesian government in
basic health services. We support democracy and peace, and want
to see the success of Indonesia's transition to democracy," Eckle
said.

In order to support civil society projects promoting human
rights and strengthening democracy, the EC delegation in Jakarta
recently launched an 800,000-euro micro-projects' facility.

The two-day seminar, attended by 23 journalists from various
print and electronic media and four officials from the Indonesian
Ministry of Foreign Affairs, was organized by the Delegation of
the European Commission and the embassies of the EU member states
at Lido Lakes Resort & Conference from May 6 to May 7, 2004 as
part of Europe Week celebrations worldwide, including Indonesia.