Koizumi, Megawati must overcome hurdles for fruitful exchange

Miyuki Hokugo, The Asahi Shimbun, Jakarta Correspondent, Jakarta

Amid historical deflation and sobering economic forecasts, Japanese Prime Minister Junichiro Koizumi is to embark on a visit to five ASEAN nations to reiterate Japan's commitment to bring prosperity to the region.

He will travel, for the first time since he assumed office, to the Philippines, Malaysia, Thailand, Singapore and Indonesia during his seven-day visit, starting on Jan. 9.

It is his popularity and zealous reform mission that have generated interest in the visit among observers and the media. However, high expectations could turn to disappointment, given the apparent absence of plans to exchange views with the public, for instance through a joint press conference.

Any criticism on this matter could also be directed at Indonesia, because so far it has been President Megawati Soekarnoputri who has baulked at such arrangements. Of course this should be no excuse for Koizumi, who could still hold his own media briefing.

The problem lies with Koizumi's perception of bilateral relations. He has not identified any urgent issues and therefore thinks that maintaining the status quo regarding bilateral relations is the best policy. This is mainly due to the self- satisfied reports emanating from diplomats and partly to his tendency to focus on domestic issues. For a connoisseur of Japanese politics, the shortcomings of Foreign Minister Makiko Tanaka must also be mentioned in this context.

This perception is fatal, especially at a time when Japan needs to review its Official Development Assistance (ODA) policy toward Indonesia.

The leadership of the prime minister on this issue is vital.

In recent years, Japanese money has accounted for 60 percent of all foreign assistance directed to Indonesia. Indonesia has become the biggest recipient of Japanese ODA, with a total amount of more than 4 trillion yen (US$40 billion). It has helped to provide infrastructure throughout the country and allowed Indonesia to attain a certain stage of development. For example, the Brantas river in East Java once caused major flooding but is now an important source of irrigation for local farmers. Construction of toll roads leading to Soekarno-Hatta International Airport was one of many large construction projects undertaken using ODA funding.

On the other hand, Japan also helped to prop up Soeharto's dictatorship and there were, though the details have not yet been fully revealed, instances where funds were misused in a way that brought huge profits for both the former president's aide and Japanese companies.

Currently, ODA allocations are also a factor in regard to Indonesia's crippling public debts. The figure is 2.2 trillion yen ($22 billion) and Japan cringes at Indonesia's attitude of "easy ask easy lend", which has aggravated the ODA issue.

Now is the time to change ODA allocations. Funds should be allocated in a way that is more people-oriented, more clearly linked to moral issues and more cost-effective. A reduction in new funds is imperative. The growing concerns of attentive Japanese taxpayers should be considered as well.

There is a prevailing concept in Indonesian government circles that Japan always supports this natural resource-rich nation without preaching like the U.S. Needless to say, new policies will never work as long as this concept prevails.

Apparently, Koizumi is missing an opportunity to announce a new policy direction to the people of Indonesia and Japanese taxpayers. According to the visit itinerary, there will only be a unilateral reading of a formal statement after the summit talks on Jan. 12. And this shows how little both leaders think of the importance of broadening diplomacy in the era of civil society.

The outcome is much more disastrous for the Indonesian side, as it could be the second time President Megawati has made this kind of mistake. When she visited Japan last September, she refused to hold a press conference, despite advice from numerous people. The result was pitiful media coverage, and Japanese citizens barely knew about the arrival of their important guest.

She actually had a chance to practice damage control at a reception organized by the Indonesian Embassy in Tokyo. Hundreds of politicians, economists, scholars and businessmen were there, willing to lend a receptive ear to the new president's message. But the president uttered not a word.

Instead, she sat at a table, the only one prepared in the biggest room of one of the finest hotels in Tokyo, for half an hour shaking hands with lines of people. The tall opposition leader Yukio Hatoyama, head of the Democratic Party, had to bend his knees when his turn finally came to greet her. There was no interpreter beside her.

Thus she disappointed, and lost, in some sense, long-time friends of Indonesia. Having witnessed this scene, I could not help thinking that some day we might look back at this visit as a turning point in the countries' deteriorating bilateral relations. I certainly hope this thought will be proved wrong.

This may sound rather odd to officials of both governments as they hailed the visit as a success in reaching a basic understanding on the debt problem, and in finding clues to solve the stalemate on big joint projects such as Chandra Asri.

"Think together, act together" is the oft-repeated Japanese government's official message here in Indonesia. The value of the message would become only half of what it should be, if the government skipped the time and effort needed to explain matters to the people, and directly meet their task of accountability. After all it is ordinary people-to-people exchanges, not business deals, that foster long term friendships and goodwill.

It is not too late for both leaders to think and act together.