Wed, 14 May 2003

Germany's Schroeder arrives for two-day state visit

Agencies, Jakarta/Singapore

German Chancellor Gerhard Schroeder arrived here on Tuesday evening for a two-day state visit, the first by a German leader since the downfall of former dictator Soeharto in 1998.

The Chancellor was greeted by Minister of Foreign Affairs Hassan Wirayuda at Halim Perdanakusumah airport.

Hassan earlier said Indonesia viewed the visit as a big step forward in reviving stagnant relations between the two countries since the end of former president B.J. Habibie's tenure in 1999.

Schroeder's entourage includes Minister of Economy Wolfgang Clement and Asia-Pacific Trade Committee Chairman Heinrich von Pierer, who is also the CEO of Germany's giant company Siemens.

The last visit made by a German chancellor to Indonesia was in 1996 by Helmut Kohl, Schroeder's political opposition.

Schroeder is scheduled to meet President Megawati Soekarnoputri on Wednesday morning at the State Palace. Later in the day, the two leaders are expected to visit the German Center in Serpong, Banten.

The two leaders are also slated to witness the signing of several memorandums of understanding (MOUs), including on the promotion and reciprocal protection of investment.

Indonesia also hopes to sign an MOU on the construction and launch of a micro-satellite in the near future.

A German official said trade and investment would dominate discussions between the two leaders, along with other topics such as the fight against terrorism, Iraq reconstruction and dialog with Muslim countries.

Indonesia remains a major market for German ships, while German firms in the country are generally involved in the energy, mining and telecommunications sectors.

The annual trade volume between the two countries stands at around 3.7 billion euros, while direct investment by German firms reaches 440 million euros.

Jakarta is the third leg of Schroeder's Southeast Asian trip after Malaysia and Singapore, with Vietnam as the last country to visit.

In Singapore, Agence France-Presse reported that the Chancellor discussed with Prime Minister Goh Chok Tong the possibility of a free trade agreement (FTA) between the city- state and the European Union (EU).

Goh praised Schroeder for defying calls to cancel his Asian tour, saying his visit was "especially important, given the SARS situation in Singapore".

Of the four Asian nations in Schroeder's tour, Singapore has been hit hardest by Severe Acute Respiratory Syndrome (SARS), with 28 dead and 205 infected in this island nation of four million. However, both global and local health officials say the outbreak has been coming under control in recent weeks, thanks to the stringent measures taken by the government.

Indeed, Schroeder and his delegation -- like all arrivals -- were scanned by a thermal imaging camera after arriving at Singapore's Changi International Airport. None had a fever.

Schroeder said at a press briefing later that the procedure was "totally pain-free".

"I still have some memories from back home in the olden days when I was in bed having my temperature taken and (that) was a lot less pleasant," he said.

The German leader and his delegation, which was reduced from 120 to 30 because of SARS fears, were screened again at Istana Place, where Schroeder held talks with Goh and Senior Minister Lee Kuan Yew.

Schroeder said the progress of a free trade deal between the EU and Singapore would depend on a series of multilateral trade talks launched by the World Trade Organization in Doha, Qatar, which have a deadline of Jan. 1, 2005.

"We are banking on Doha to come up with a result," Schroeder said. "At the back of our minds, we are thinking of alternatives, but as Europeans, we would ideally like to see results out of the Doha process."