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.