Malaysia, RI enjoy cordial ties despite problems

Malaysia, RI enjoy cordial ties despite problems

Veeramalla Anjaiah, Staff Writer, The Jakarta Post, Kuala Lumpur

Relations between Malaysia and its sprawling neighbor
Indonesia are solid despite some problems and their different
perspectives in regards current issues like haze, illegal
Indonesian immigrants, and territorial claims.

Both Kuala Lumpur and Jakarta consider their differences to be
a litmus test of their bilateral ties.

Malaysia, with a Muslim majority, has been enjoying close and
cordial relations with Indonesia, the world's largest Muslim
nation, since the end of the konfrontasi (1965-67) era when they
had verged on the edge of armed confrontation.

"Our bilateral relations are very good, and we manage it very
well. We know that there are differences in our approaches and in
regards some sensitive issues, but we also know how to overcome
these differences and handle those sensitive issues," Syed Hamid
Albar, Malaysian Minister of Foreign Affairs, told The Jakarta
Post in Malaysia's new administrative capital, Putra Jaya,
earlier this month.

Scores of Malaysians interviewed by the Post said they were
quite unhappy with the Indonesian government's handling of the
haze problem. Nearly every dry monsoon, thick smoke caused by
forest fires in Sumatra and Kalimantan covers Malaysia and
creates a health hazard for thousands of Malaysians.

Bilateral ties also became a bit strained following the
massive deportation of thousands of illegal Indonesian workers
from Malaysia, a few of whom were even jailed and caned for
resisting deportation procedures.

The incident led to a war of words between Malaysian officials
and Indonesian political leaders and activists, and provoked
protests by Indonesian labor activists at the Malaysian Embassy
in Jakarta.

According to Hamid Albar, there are almost one million
Indonesians who are legal residents in Malaysia. Malaysia also
has another one million illegal foreign workers from various
countries, and the majority of these illegal workers are
Indonesians.

"We have a policy of prospering by neighbors," said the
foreign minister.

Despite the policy, Malaysia, in an unprecedented move and
armed with its new immigration laws, deported several hundred
thousands of illegal aliens including 480,000 Indonesian workers.

"We want to take Indonesians, but we don't want them to be
exploited. What we have been saying is that they shouldn't come
illegally," Hamid Albar explained, adding that his country also
needed Indonesian workers to help support its growing
agricultural, industrial, and construction sectors.

At the sidelines of his annual consultative meeting with
Indonesian President Megawati Soekarnoputri in August,
Malaysian Prime Minister Mahathir Mohamad expressed his optimism
on improving bilateral relations with the Indonesian government
despite the deportation issue.

Meanwhile, bilateral trade has been growing at a strong pace,
in spite of the 1997 economic crisis that plunged Indonesia into
turmoil.

"In fact, Indonesia is our biggest trading partner in the
ASEAN (Association of Southeast Asian Nations) region, and our
trade with Indonesia increased even during the crisis period,"
Malaysia's Minister of International Trade and Industry Rafidah
Aziz told the Post at her office in Kuala Lumpur.

The total value of bilateral trade in 2001 was US$3.8 billion,
an improvement on the trade value in 2000, which stood at US$3.1
billion. Indonesian exports to Malaysia in 2001 were recorded at
US$2.2 billion, or around 4 percent of Indonesia's total exports
that year, worth US$56.03 billion.

Bilateral trade with Malaysia has always been in Indonesia's
favor. For example, Indonesia enjoyed a trade surplus of US$600
million in 2001 and US$540 million in 2000. Jakarta expects
exports to Kuala Lumpur will increase this year.

On the investment side, Malaysian investors -- whose total
investments in Indonesia since 1967 cumulatively amount to US$9.1
billion -- come to Indonesia given the availability of land for
palm oil plantations, cheap assets and labor.

Unfortunately, confusion and uncertainty arising from the
newly introduced regional autonomy laws, as well as exorbitant
land claims and high compensation sought by Indonesian villagers,
have forced a number of Malaysian investors to raise their
eyebrows and adopt a cautious stance.

A few investors, however, could not hold off their plan, as in
the case of the Bank Niaga deal.

Malaysia's Commerce Asset Holding Berhad, one of the country's
leading financial conglomerates, purchased on Nov. 8 a majority
stake in Indonesia's Bank Niaga for Rp 1.05 trillion (US$114
million) from the Indonesian Bank Restructuring Agency.

As signatories of the ASEAN Treaty of Amity and Cooperation --
which advocates the principles of non-interference in each
other's internal affairs -- Malaysia and Indonesia have agreed
that, should they be involved in a particular dispute, they would
resolve the issue peacefully and amicably.

A case in point is the territorial issue surrounding the
Ligitan-Sipadan Islands, which are claimed by both Jakarta and
Kuala Lumpur.

"...Because of the respect we have for each other, we agreed
that the dispute should be settled through the ICJ (International
Court of Justice), which will give its judgment at the end of
this month," Hamid Albar said, affirming that Malaysia-Indonesia
ties are strongly cemented in line with the ASEAN spirit. But
Indonesia's Foreign Minister Hassan Wirajuda said Tuesday that
the decision regarding the above issue is expected in mid
December.

The writer was in Malaysia recently at the invitation of the
Malaysian Institute of Strategic and International Studies in
Kuala Lumpur.