Fri, 03 Oct 1997

Germany 'rediscovers' all that Indonesia has to offer

By Bruce Emond

JAKARTA (JP): When people ask German Ambassador to Indonesia Dr. Heinrich Seemann what Indonesia is really like, he tells them to look out of the windows in his office at Jl. MH Thamrin's vibrant skyline.

"This is the Indonesia I know," he said. "It is not merely the images of paddy fields in Bali that most Germans think of. There is much more."

As Germany celebrates its seventh year of reunification today, the country is embarking on a concerted effort to shift its focus back to the emerging economic powers in Asia, including Indonesia.

Although his government had never abandoned its long-standing interest in the region, Seemann acknowledged that Asia had sat on the back burner of priorities in recent years as Germany put its own house in order.

"The reunification was a great event because it was achieved through peaceful demonstrations and, thank God, there were no massacres," he said.

Initial euphoria was followed by a sobering realization of the daunting task of unifying nations with hugely disparate economic and social systems.

"Economically and psychologically, the reunification was much harder than expected. For example, there was no unemployment in East Germany, just like in other communist states. You were dealing with factories which had 50 percent of their workforce doing nothing."

The German government has pumped 150 billion DM annually into putting the beleaguered economy and infrastructure of the former East German states back in working order.

The collapse of the Eastern Bloc -- and the accompanying demise of the market network linking the countries -- created the additional concern of a looming flood of economic refugees.

"We had two alternatives," Seemann said. "Either we could build big walls to protect ourselves or try to develop these. Obviously, we chose the latter but it cost a lot of money to do it."

Bound by the necessity of taking care of business on the home front, Germany's active presence in Asia inevitably tailed off.

"The problems from reunification contributed to the issues we face today," Seemann said. "It is difficult to be in both markets at the same time."

With much headway made in confronting domestic problems, Germany is now turning its attention back to Asia in what Seemann terms a "rediscovery ... we heard the music playing in Asia and knew we should have a greater role".

This renewed focus on Asia has come in tandem with a German foreign policy emphasizing stepped-up economic, political and cultural relations in the region.

Indonesia naturally figures prominently in these designs for the future, Seemann said. The German Federation of Chambers of Commerce placed the country atop a survey of investment opportunities which compared Indonesia with China and India.

The ambassador said close German-Indonesian relations today -- signified by German Chancellor Kohl's four visits to Jakarta -- had deep historical roots.

"Thousands of Germans lived and worked in the Dutch East Indies and German was even a required language of study in schools," he said. " After World War II and the war of independence here, Indonesia was not inclined to renew its ties with the Netherlands but did so with Germany, which had a similar language and culture to the Dutch."

German universities were the most popular choices for Indonesian students during the 1950s and 1960s, with Minister of Research and Technology B.J. Habibie and the late fashion designer Prajudi among the graduates.

Seemann conceded that the higher education relationship had "lost some of its momentum" in the wake of slick promotional efforts by U.S. and Australian schools to enroll Indonesian students.

"The problem is that we have a state university system and we neglected the marketing side. But that does not detract from the fact that state universities offer an excellent product.

"We participated for the first time this May in an education fair for Indonesian students."

Business ties are also getting a boost. In addition to the many German companies with long-established ties in Indonesia -- engineering giant Siemens opened its Jakarta office 143 years ago -- reach out efforts are being made to small and medium firms.

"There used to be a time when German businessmen brave enough to do so would come here on a plane, get a list of phone numbers and sit in their hotel room trying to make a connection," Seemann said. "We are now establishing centers to help them."

Modeled on the successful German Center in Singapore, the German Center for Industry and Trade at Bumi Serpong Damai, 25 kilometers west of Jakarta, will provide businesspeople with the information they need in facilitating their entry into the local market.

The Indonesia-Germany Forum for Economy and Technology, spearheaded by minister Habibie, is also striving to better the nations' cooperation.

Seemann is full of praise for the minister.

"He has a very strong vision of the future. He is not just thinking about tomorrow.

"People need this today because tomorrow is almost yesterday in the world of technology."

Still more can be done, Seemann said, particularly from the Indonesian side.

"Indonesia needs to be more aggressive in raising its profile for industry. It did it successfully with tourism, so it could do the same in this sector."

Ending the misconceptions among Germans about Indonesia is needed.

"Germans either think about Bali or, if they are more politically minded, East Timor if they hear Indonesia," Seemann said. "The reality of what Indonesia really has to offer gets lost somewhere between these two points."