Indonesia-Australia trade ties strong
Adianto P. Simamora, The Jakarta Post, Jakarta
Visiting Australian Prime Minister John Howard said on Thursday that the currently strained political relations between Australia and Indonesia had no impact on both people-to-people links and the business relations of both countries.
Howard acknowledged that the political relationship of both neighboring countries had not been in good shape in recent years but he said that people-to-people links and business relations remained strong.
"I am very happy with you here. Sustained by very strong person-to-person links in so many areas, ... we know that the basic infrastructure of our relationship has remained very strong," Howard told Indonesian and Australian businesspeople during the business luncheon hosted by the Indonesia-Australia Business Council (IABC).
Howard added that one of the main aims of his visit was to stress the critical importance of growing business relations and economic links between Australia and Indonesia to the countries' bilateral relationship.
Howard is on a three-day visit to Indonesia as part of Australia's efforts to mend relations between both countries.
Relations between Indonesia and Australia plunged to a low level in 1999 following Australia's role in leading the international peacekeeping force to stop violence in East Timor during its transition to independence.
The Howard administration thereafter made several comments in the Australian media that many Indonesians considered unfriendly towards Indonesia.
Legislators refused to meet Howard at the legislature during the visit.
Howard left on Thursday afternoon for the royal city of Yogyakarta before intending to return to Australia on Friday.
Meanwhile, State Minister for State Enterprises Laksamana Sukardi agreed that the current political tensions would not affect business relations between the two countries.
"That is only a political matter, there is no impact on business relations," Laksamana told The Jakarta Post after the business lunch.
According to Laksamana, foreign investors, including those from Australia, still stayed away from Indonesia mostly due to domestic problems, including legal uncertainties.
Laksamana urged all parties to work together to solve these problems in a bid to restore a positive investment climate.
"We urgently need to restore investor confidence in our country by providing legal certainties," Laksamana said.
"If we continue quarreling, foreign investors will not come here," he said.
Meanwhile, IABC chairman Noke Kiroyan stressed that the meeting was meant to show that the business relations between Indonesia and Australia remained normal despite the political tension between both countries.
"Australian businesspeople are mature enough not to mix political and business problems," said Noke, who is also chairman of Rio Tinto Indonesia, a subsidiary of Anglo-Australian mining giant Rio Tinto.
Many Australian investors have invested in various business sectors in the country, especially the mining sector.