Future prospects of Japan-Indonesia relations
Future prospects of Japan-Indonesia relations
By Takao Kawakami, Ambassador of Japan
A special article on the occasion of the birthday of His Majesty
the Emperor of Japan.
1999 was a historic year for Indonesia. The domestic process
of a general election and the selection of a new President and
Vice President was successfully implemented. The direct ballot
voting in East Timor took place, and the separation of that
region was formally recognized in the People's Consultative
Assembly. We are glad to note the smooth establishment of the new
government.
Japan welcomes these political developments, and, as a
neighbor and friend of Indonesia, Japan will not spare its
efforts to support the reform efforts of Indonesia. Japan expects
its friendship with Indonesia to develop further in the coming
year. I would at this time like to recapitulate the recent key
events in Japan-Indonesia relations.
President Abdurrahman Wahid visited Japan from the 15th to the
16th of November, and held a meeting with Prime Minister Obuchi
on the 16th of November. Just ten days later, on the 26th and the
27th of the same month, Prime Minister Obuchi visited Indonesia.
The two dignitaries again held meetings. The visit by Prime
Minister Obuchi was the first by a foreign top-level government
leader since the establishment of the new government in
Indonesia. During the talks, Japan expressed its political will
to assist Indonesia in its reform efforts, and made concrete
proposals to that end. This was greeted by whole hearted
agreement from the Indonesian side. It is striking that in this
short period of time both leaders have visited one another's
countries. Such mutual visits certainly have contributed
immensely toward constructing a strong and personal relationship
between the two leaders and further enhancing the friendly and
cooperative relationship between Japan and Indonesia that has
been matured over the years.
The restored confidence of the international community has
brought renewed stability to the rupiah and there is a sense that
the Indonesian economy is coming out from its worst times.
Japanese businesses have long been operating in Indonesia, mainly
in the manufacturing sector. Even through the most difficult
period of economic crisis, Japanese companies maintained their
overall presence in Indonesia. At present over one thousand five
hundred Japanese enterprises are operating in Indonesia, and
roughly twelve thousand Japanese people are living here. It is
through their economic activities that close relationship between
both countries is further strengthened. Japan being the top
investor in Indonesia, the cumulative amount of Japanese
investment in Indonesia has so far totaled 44 billion U.S.
dollars. It is expected that with Indonesia's recovery, the
amount of Japanese investment will increase further. Japan will
extend her hand in cooperation, and help the Indonesian economy
to attain a level of international competitiveness.
To help Asian countries cope with the difficulties brought on
by the unprecedented economic crisis, since 1997 Japan has been
implementing an assistance scheme totaling 80 billion U.S.
dollars. This assistance scheme, the largest ever, focuses on the
following four points: 1) Revitalizing economics; 2) Economic
structural reform and human resources development; 3) The
development of a social safety net as relief measures for the
socially vulnerables; and 4) Stabilizing currencies.
At present 68 billion dollars have been implemented for such
purposes. It is comprised of an international assistance package
coordinated through the IMF (19 billion dollars), medium-long
term as well as short-term financial support (the amount of 30
billion dollars) as part of the New Miyazawa Initiative, and the
establishment of an Asian Currency Crisis Support Facility within
the Asian Development Bank (about 3 billion dollars).
Furthermore, assistance such as full implementation of the New
Miyazawa Initiative as well as the Special Yen Loan for building
up infrastructure which will contribute to economic structural
reforms expected to go ahead.
In Indonesia, since last year, Japan has increased assistance
for programs that focus on socially vulnerable and unemployed
people, agriculture, small and medium sized enterprises, and the
trade finance sector generally. In order to aid the socially
vulnerables, wide-ranging cooperation has been established not
only on a government-to-government level, but also through direct
assistance to NGOs through the small-scale grant assistance for
grassroots projects. This kind of assistance covers, for example,
the distribution of rice to the poor through the Nahdatul Ulama,
humanitarian aid to Acehnese refugees under the auspices of the
Indonesian Red Cross.
To cope with a problem of unemployment, Japan has also
implemented quickly-disbursable Yen Loans for various sectors of
the economy such as farming, transportation and education.
Moreover, during the Indonesian general election in June,
Japan contributed to the fair implementation of the election by
dispatching experts to help with the implementation of the
election and by providing equipment and funds.
Japan has been providing economic assistance through various
programs including the Yen Loan Program, as well as grant and
technical assistance. These programs have placed importance on 1)
securing of fairness and transparency; 2) human resources
development and education; 3) environmental protection; 4)
reorganization of the industrial structure; and 5) consolidation
of an industrial base (economic infrastructure).
In cumulative terms, Indonesia is the largest recipient of
Japanese economic assistance. This reflects the great importance
Japan places on its relations with Indonesia. Through such
efforts as dialogue with the Indonesian government, Japan will
continue to strive to provide a cooperative hand to Indonesia in
an appropriate manner.
Japan hopes to develop a wide-ranging relationship with
Indonesia as well as the ASEAN countries. In September of this
year, the "Mission for Revitalization of Asian Economy", headed
by Mr. Hiroshi Okuda, the Chairman of the Japanese Federation of
Employees' Association (Nikkeiren), was dispatched to Jakarta. A
proposal was put forth that included the establishment of better
ties with Japan's Asian neighbors. Prime Minister Obuchi has
proclaimed the "Obuchi Plan for Enhancing Human Resources
Development and Human Resources Exchanges in East Asia" at the
ASEAN plus Japan, China, and Korea summit meeting held on the
28th of November. The proposed 10 point comprehensive program
will enhance human resources development, and people-to-people
exchanges, in order to build up a human network in Asia. The
program consists of three pillars as follows: (a) Enhancing the
development of highly specialized human resources in the areas of
finance and higher education, (b) Intensifying human resources
exchange at civil level, and (c) Strengthening the assistance for
student exchanges, which would be an investment for future
relations with East Asia and Japan's intellectual contribution to
the international community. The program encourages the
development of people-to-people exchange on a grassroots level
through the building of an ASEAN-Japan NGO Network. It would
include increased acceptance of foreign students from East Asia
to Japan through Japanese government scholarships.
Japan has been contributing to the peaceful solution of the
East Timor issue. Japan considered a strong Asian participation
in the multinational force in East Timor to be important, and
hence pledged around 100 million dollars to the UN Trust Fund in
order to facilitate the participation of other Asian development
nations in this force. Moreover, in order to aid East Timorese
refugees in West Timor, the Government of Japan has disbursed two
million dollars as a first step in assistance to international
humanitarian organizations. Further assistance is now being
considered. In addition to financial aid, since the end of
November, Japan is providing aircrafts of the Air Self Defense
Forces for the purpose of transporting UNCHR relief materials
between Surabaya and Kupang.
I have described some points regarding Japan-Indonesia
cooperation at the government level. But this constitutes only
part of our bilateral relationship. Thanks to the rapid
development of information technology and globalization, it has
become much easier to initiate international person-to-person
contact at the grassroots level. I am convinced that it is this
sort of people-to-people exchange, together with intensified
cultural contacts and exchanges between the two peoples, that
brings about deep mutual understanding, and it is expected that
such exchanges will contribute to the productive and mutually-
supportive relationship between our two countries in the future.