France and Indonesia bolster strong economic ties
French and Indonesian economic ties continue to flourish in 1994 as both countries explore new avenues of cooperation and trade.
Today, the two republics enjoy unprecedented economic relations. Compelling evidence of this successful cooperation is that France's market share in Indonesia ranks as its largest in Asia.
France's business and investment track record in recent years is impressive. French direct investment in Indonesia swelled from US$256.1 million in September 1992 to US$418.9 million in December 1993, a satisfying 40 percent increase.
These figures do not take into account significant investments by French sister companies based in other Asian countries or those in the oil or banking sector which are not administered under the BKPM, the Investment Coordinating Board. France ranks 15th among foreign investors in Indonesia.
With disparate geographical and cultural backgrounds, the strong economic bonds linking France and Indonesia are nothing short of "remarkable," says French Ambassador to Indonesia Dominique Girard.
Despite difficult economic and political times in Indonesia in the 1950s and early 1960s, France showed its confidence in the establishment of the New Order government through substantial investments in Indonesia in ensuing years.
"The situation in Indonesia in the 1960s did not prove to be a major impediment," Ambassador Girard says. "It did not prevent us from realizing that we could be part of the country's future."
France played a prominent role in several major development projects in the past 25 years. Notable among them was its technological and financial assistance in the construction of the Jatiluhur dam, a vital source of hydro-electric power and irrigation for the West Java region, which was inaugurated in 1968.
France's economic presence in Indonesia increased markedly in the late 1970s following the conflicts in the Indochina region. The commitment of the French government to provide valuable educational assistance and economic aid in Indonesia was augmented by private French companies which founded joint-venture companies and shared technological expertise with their Indonesian partners.
Sectors
French companies now operate in a diverse range of industrial and economic sectors in Indonesia, from engineering and pharmaceuticals, to hotels, law, construction, paper production and textiles.
French know-how was also put to use in the construction of the Soekarno-Hatta Airport in Jakarta, considered by many travelers to be one of the most attractive and accessible airports in Asia.
In recent years, France has moved to diversify and increase its participation in burgeoning sectors. To this end, the two countries signed a memorandum of understanding in 1992 to step up their efforts to promote joint ventures.
This goal has seen fruition with the founding of French- Indonesian cooperation in production of radiology equipment, the maritime industry, telecommunications and computer software.
In 1993, Arianespace, a consortium of France's Aerospatiale and several other Western European aerospace companies, won the tender to launch Indonesia's Palapa C-1 communications satellite from a host of international bidders.
Arianespace, which makes and markets Ariane rockets at its Paris headquarters, has scheduled the launching for 1996.
Ambassador Girard believes tourism presents "great potential. If you go to the areas of Indonesia which are still fairly underdeveloped, you will often find French tourists. There is a good market for cultural tourism in France."
The number of French tourists visiting Indonesia is rising steadily, from 56,603 in 1991 to almost 70,000 in 1993.
Economic aid
France's generous allocation of 0.7 percent of its Gross National Product (GNP) for economic aid to developing nations earned praise from President Soeharto in 1992.
Soeharto said industrial nations should follow suit in helping developing nations extricate themselves from the mire of staggering debt payments.
France is second only to Japan in its annual aid assistance to Indonesia. As a member of the Consultative Group on Indonesia, France pledged US$140 million for 1994-95, an increase of more than $17 million from its contribution in 1993.
"The trends in Indonesia over the last 20 years have confirmed our faith in this nation's continued development," Ambassador Girard says, pronouncing himself to be "a very happy ambassador."