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.