Japan to bring new initiatives to ASEAN Summit

Japan to bring new initiatives to ASEAN Summit

Japanese Prime Minister Junichiro Koizumi will attend the
Association of Southeast Asian Nations (ASEAN) Summit in Bali,
along with representatives of China, South Korea and India. The
Jakarta Post's Kornelius Purba had the chance to speak with
Japanese Ambassador to Indonesia Yutaka Iimura about the summit,
as well as bilateral relations between Japan and Indonesia.
Following are excerpts from the interview:

Question: China continues to attract foreign direct investment
(FDI), including Japanese investment, while FDIs are declining in
the ASEAN region. What is your government's strategy to boost
investment in this region?

Answer: It is true that Japanese investment -- not only in
Indonesia, but also in some other ASEAN countries -- has been
declining over the past several years, particularly since the
economic crisis of 1997-1998. But I don't think we should be
pessimistic about the prospect of Japanese investment here and in
other ASEAN countries.

For instance, major Japanese automobile companies are making
new investments in Indonesia. They are considering Indonesia as
the future base for production and export in the region,
particularly given that ASEAN economic integration is
progressing.

So they are not thinking about individual countries in terms
of bilateral relationships, but they are thinking of the future
of investment in the region as a whole.

In this sense, Japanese investors are making investment
decisions for the mid-term and the longer term ... Of course, it
does not mean we shouldn't do anything about promoting investment
in this region. I think it is important for Indonesia to improve
its investment condition. We have talked about this with your
government.

In this regard, I am very much encouraged by the economic
package announced in mid-September. The government is laying down
a very concrete measure, a very concrete timeframe for the coming
weeks.

This is going to replace the IMF program, and will be the
basis for the country's economy. I do hope this economic package
is going to be followed up.

We are now focusing on two main areas. First, in poverty
alleviation -- we want to do more to alleviate poverty. The
second is investment-related infrastructure like roads and ports.
Also, we have policy tools like the JBIC (Japan Bank for
International Cooperation) loans to private companies and trade
insurance.

At next week's summit, will Japan establish any new economic
cooperation with ASEAN?

At this coming ASEAN+3 Summit in Bali, we are going to sign a
framework agreement for comprehensive economic partnership, which
includes free trade. It will also cover tourism, capacity
building, trade, services and other broader areas of economic
cooperation between Japan and ASEAN. This is going to be one of
the major achievements.

And 2004 will be the start of ASEAN and Japan's consultation,
and in early 2005, we will be starting negotiations on this
agreement. Then, I believe the Prime Minister is going to talk
about broader areas of economic cooperation between Japan and
ASEAN.

One is IT cooperation -- we call it the Asia Broadband
Cooperation. Also, he may talk about the Asian bond market, which
is very important to promote investment, taking advantage of the
high rate of savings in ASEAN countries. He might talk about
development in the Mekong region, which is very important in many
respects, particularly to fill the gap between the original and
new ASEAN members.

I believe he intends to talk about a freer flow of people
between Japan and ASEAN, and touch on cultural aspects -- he
wants to finish the Year of ASEAN-Japan Exchange successfully. He
perceives that Japan and ASEAN member countries share many common
trends in history and cultural studies.

What is your government's assessment of terrorism here?

There has been tremendous achievements on the part of
Indonesia in fighting terrorism. The situation has been
progressing, perpetrators of the bombings have been arrested,
some are now on trial, and security measures have been tightened.
I think this is appreciated very much by the international
community.

But of course, fighting terrorism is not a short-term effort,
and also requires mid-term and long-term efforts. Japan wishes to
strengthen cooperation with Indonesia in this area. We sent our
experts to assist in the investigations of the Bali and the
Marriott Hotel incidents. We also provided security equipment for
airports and other areas immediately after the bombing incidents.

Now, we are studying how else we can help, particularly in
regards port and airport security, and we plan to send security
experts and equipment.

We should continue in these efforts for the mid- and long-
term.

As a co-sponsor of the Tokyo Conference on Aceh (Nanggroe Aceh
Darussalam), do you think a peaceful solution is still possible
in Aceh?

In regards Aceh, President Megawati Soekarnoputri in her Aug.
1 speech to the People's Consultative Assembly mentioned that the
integrated operation is progressing. She also said, the sooner
the normalization, the better. I share her view. We hope that the
martial law status ends as soon as possible.

We also hope that we will be able to work together with
Indonesia to rebuild Aceh, which has been damaged by many years
of conflict. Japan continues to believe that a political solution
is the best approach for Aceh. Japan is ready to support this
political process, if Indonesia asks us, as was clearly indicated
by Prime Minister Koizumi when President Megawati visited Japan.

Indonesia intends to propose to the United Nations that the
Free Aceh Movement be blacklisted as a terrorist group. Do you
think this will help in resolving the Aceh issue?

I am not sure whether the government has made a final decision
on that, and I would like to refrain from making any comments.
Basically, the best way to solve the Aceh issue is by a political
approach. And I hope all measures to be taken by the Indonesian
government will be done in light of this perspective, that is,
how to bring about a political solution for Aceh.

In December, Japan will host a summit with ASEAN. What is the
purpose of the summit?

This year is the 30th anniversary of the Japan-ASEAN
relationship. In December, the Prime Minister and ASEAN heads of
states will commemorate this friendship and discuss at length
what the relationship between Japan and ASEAN should be. We have
a lot of meetings in Bali over two days ... including
opportunities to have deep discussions in regards our bilateral
relationships.

The summit in Tokyo will also send a very strong signal to the
people of Japan on the importance of the relationship between
Japan and ASEAN.