Jakarta's ties with Tehran

Jakarta's ties with Tehran

The Indonesia-Iran relationship has never been as good as it
is today. And tomorrow it promises to be even better. The ties,
which warmed again a few years ago after some trying times, enter
a new phase today as Iranian President Hashemi Rafsanjani arrives
here to return President Soeharto's visit to his country last
year.

The two countries now have a more solid than ever cooperative
bilateral relationship to build on. They have been engaged in
active cooperation in international bodies for some time. Both
Indonesia and Iran are members of the Organization of Petroleum
Exporting Countries (OPEC), the Non-Aligned Movement (NAM) and
the Organization of Islamic Conference (OIC).

The relationship has been a long one, if not always a very
close one. During the regime of Shah Pahlevi, Indonesia saw Iran
as a good friend in diplomatic activities. In 1962 Indonesia
chose a senior Iranian diplomat to head the UN Temporary
Administration in West Irian -- now Irian Jaya -- after the Dutch
colonial rulers left the island.

But in the following years, especially after the Iranian
revolution and during the Iran-Iraq war, the relationship
experienced ups and downs.

The war itself, started by the unanticipated Iraqi invasion of
Iran in 1980, cost Tehran billions of U.S. dollars. For at least
10 years, Iran, which was busy consolidating after the Islamic
revolution in which the shah was driven out of the country, had
to allocate a great portion of its national budget for defense.
The ensuing economic crisis seems to have dragged on and on. Even
today Tehran faces financial difficulties.

So, although the Islamic revolution has allowed Iran to adopt
a more independent and active foreign policy, it has at times
been more inward than outward looking, what with its concerns at
home.

And that very revolution set Iran in a new light
internationally, with suspicion emerging on the part of certain
countries in the West -- especially those whose hegemonic
interests it ended -- as to its nature and purposes.

These western countries and their local allies have not only
accused Iran of "exporting revolution" but have also frowned upon
those who forged good relationships with Tehran.

But these problems have not discouraged Indonesia and Iran
from developing and boosting their cooperation.

Now, Rafsanjani's visit offers a prime opportunity to take
further steps on matters discussed during Soeharto's visit to
Iran last year. Rafsanjani may well take this chance to convey
Iran's wishes to get Indonesian support for further development
of its shipyard.

Indonesia, on the other hand, can be expected to make an
effort to take advantage of Iran as a gateway for its exports to
the landlocked countries of Central Asia.

The two leaders might also discuss ways to boost bilateral
trade. Indonesian exports to Iran stood at US$14.72 million last
year, a decline of 73.2 percent from the previous year.
Indonesian imports from Iran -- which mostly consisted of crude
oil -- also sharply declined last year, reaching only $166.71
million compared to $669.32 million in 1993.

Although this year looks a bit better export-wise, with
Indonesian exports to Iran increasing by 38 percent compared to
the same period of 1993, its imports dropped by 50 percent
compared to the same period.

These trends require serious attention because Iran has become
increasingly more important to Indonesia, what with the difficult
to manage trade regulations some Middle Eastern countries adhere
to making it appear as if they are not ready to be our trade
partners under a modern economic system.