Indonesia and Europe: Partners in progress
Indonesia and Europe: Partners in progress
A cooperative partnership between Indonesia and the European Commission was initiated in 1976 within the framework of the EC's cooperation with Asian countries.
The EC-ASEAN Cooperation Agreement signed in Kuala Lumpur in 1980 went a step further by integrating specific regional considerations to be taken into account and describing the objectives and instruments of cooperation in the fields of development assistance and economic cooperation. A bilateral framework agreement on trade and cooperation with Indonesia was signed in 1982.
Over the years, the cooperation between the EC and Indonesia has focused on Indonesia's development priorities. Jointly defining clear objectives, adapting instruments and deciding on the best way of responding to Indonesia's short-term difficulties, long-term challenges and national constraints have all be a part of that focus.
This bilateral cooperation has been wide-ranging, covering many sectors, such as rural development, science and technology, energy and the environment, to name but a few prominent areas of partnership. The projects and programs funded by the EC come in addition to the very substantial assistance extended to Indonesia by the member states of the European Union.
Between 1976 and 1992, the EC committed US$375 million for its cooperation efforts with Indonesia, of which some 90 percent went for development assistance. OECD figures show that for the same period, the European Commission and the European Union member states contributed US$4.3 billion in official development assistance (ODA) to Indonesia. The EU is therefore Indonesia's second largest donor. Development assistance
During the 1980s and the early 1990s, the EC's development cooperation program emphasized support for the Indonesian government's efforts to maintain self-sufficiency in rice, while supporting the consolidation of a more diversified agricultural base.
EC-funded programs in this area have been focusing on irrigation and drainage, palawija seed production and marketing, animal husbandry, fisheries and rural credit.
Recent EC-Indonesia cooperation, including major projects to commence in 1995-1996, indicate a shift of emphasis towards Indonesia's initiatives to develop sustainable management of its rich natural resources, particularly in the forestry sector.
Current projects include a comprehensive conservation and development program for the Leuser ecosystem in North Sumatra, testing on a commercial scale of sustainable forest management techniques in East Kalimantan, forest fire prevention and control, improved radio communications and inventory of forest resources using European remote sensing technology.
With these projects, total EC commitments to Indonesia in the areas of forestry and environment amount to 74 million ECU (Rp 215 billion).
In 1994, the EU and its member states agreed to provide technical and financial assistance to improve Indonesia's actions to combat the spread of the HIV-AIDS epidemic in the country. In January 1995, a project was inaugurated to help national efforts to slow down the spread of the deadly disease. The project, launched with the Coordinating Ministry of People's Welfare, will focus on the prevention and control of Human Immunodeficiency Virus transmission in Jakarta, Bandung and Surabaya.
Economic cooperation
In recent years, the European Commission has been following a policy towards Asia which aims at shifting the emphasis from classic development assistance to economic cooperation.
Economic cooperation in this context is characterized by an element of mutual benefit. This kind of cooperation can address both the public and the private sectors. This new policy is already clearly reflected in the composition of the ongoing cooperation programs with ASEAN.
In the early days, typical projects concentrated on post- harvest losses and inland fisheries. At a later stage, the successful industrial standards and quality assurance program appeared on the scene. Today, typical EC-funded programs being implemented in Indonesia and other Asian countries include cooperation in the fields of business promotion, energy, intellectual property and higher education.
A Europe-Indonesia Business Information Center will soon be opened in Jakarta. The center will provide much needed information as regards regulations and market practices in the EU to Indonesian companies. On the other hand, it will supply information and advice on the Indonesian economy and its regulatory and industrial frameworks to European companies.