Mon, 20 Oct 2003

Indonesia-Netherlands economic ties flourishing: Official

Sari P. Setiogi, The Jakarta Post, Jakarta

Economic relations between the Netherlands and Indonesia are now flourishing after some lean years resulting from the economic crisis.

During the crisis, which started in mid-1997 and reached its peak in 1998 and 1999, many Dutch companies packed their bags over fears about Indonesia's economic outlook.

"Today, maybe because economic developments in Indonesia are now more favorable, in my opinion there is increasing interest among Dutch companies in doing business in Indonesia," the Director General of Foreign Economic Relations at the Netherlands' Ministry of Economic Affairs, Dirk J. Bruinsma, told The Jakarta Post on the sidelines of the 25th anniversary of the Indonesian-Netherlands Association (INA) on Friday evening.

Bruinsma said Dutch exports to Indonesia increased by five percent in 2002 compared to the previous year. He did not, however, give precise figures.

He was optimistic that Dutch exports to Indonesia would continue to rise this year.

Meanwhile, Central Statistic Bureau (BPS) data says that Indonesian exports to the Netherlands dropped by 6.17 percent during the first five months of the year compared to the same period in 2002.

Exports reached US$613.06 million between January and May 2002, as against $575.25 million in 2003.

"Today, not only big Dutch companies, but also small and medium companies, see opportunities in Indonesia or at least are investigating the possibilities in Indonesia," said Bruinsma.

According to Bruinsma, there are about 3,000 Dutch companies operating in Indonesia today with two-thirds of them -- about 2,000 -- being here for more than five years.

"That shows that Dutch companies are interested in the Indonesian market not only for what I call hit-and-run, but also for long-term interests," he said.

He also said that almost everyday the INA and the Dutch Embassy received telephone calls and visits from businessmen looking for information about opportunities in Indonesia.

"It shows that after a period (of downturn), there is now an increase in interest."

The INA, first established in 1978, operates as the Indonesian Netherlands Chamber of Commerce here.

Bruinsma said that the controversial comments made by Indonesian Minister of Justice and Human Rights Yusril Ihza Mahendra earlier this month would not have an adverse impact on the bilateral relations between the two countries.

"I don't think there will be negative impact. Why? As I mentioned tonight, even in a good marriage from time to time there is stormy weather but if you know each other for a long time you can survive that," he said.

"We have to work on it. It does not work automatically, it is not something to take for granted. That's why I am here to show friendship from our side. We are totally committed to that and hopefully we can turn the page of the book and look forward," said Bruinsma.

Yusril, in an interview with a Dutch television station, said he "hated" the human rights violations committed by the Dutch during their colonial rule in Indonesia. He made the remarks after being questioned if the new Criminal Code proposed by his ministry violated human rights. Yusril's remarks caused an uproar in the Netherlands as some papers quoted him as saying he "hated Dutch people".