Message from H.E. Dato' Hamidon Ali

Message from H.E. Dato' Hamidon Ali

Ambassador of Malaysia to Indonesia

Malaysia celebrates its 46th National Day today. Malaysians all over the world are celebrating this joyous and auspicious occasion with pride and in the spirit of solidarity and unity.

We are undertaking various activities here in Jakarta and other cities in Indonesia to celebrate this day.

Bilateral relations between Malaysia and Indonesia remain warm and cordial. There is excellent cooperation between the two Governments and peoples. Bilateral policy issues and problems are discussed on an annual basis at the highest level between Head of Government of Malaysia and Indonesia and also through the Joint Commission Meeting (JCM) led by the Foreign Ministers of Malaysia and Indonesia. The JCM provides an important avenue for both countries to raise and resolve issues that are potential irritants to harmonious bilateral ties.

The continuing exchange of high level visits propelled the expansion and deepening of bilateral cooperation. As with two very close "relatives", minor hiccups emerged from time to time. Frequent discussions and exchange of visit between the top leadership of both countries have provided the necessary impetus to overcome the hiccups and enhance bilateral relations.

Her Excellency President Megawati Soekarnoputri just recently made a working visit to Malaysia in the context of the established tradition of annual consultations between the two leaders of Malaysia and Indonesia.

She met with Prime Minister Dato' Seri Dr. Mahathir Mohamad in Kuching, Sarawak on 28 August 2003. During the meeting, both leaders discussed many issues of mutual interest. Earlier in the year, President Megawati attended the 13th NAM Summit held from 24-25 February, 2003 in Kuala Lumpur.

During the visit, President Megawati also held bilateral talks with Prime Minister Dato' Seri Dr. Mahathir Mohamad. A number of Malaysian Ministers had made working visits to Indonesia in 2003 including the Minister of Information, Minister in the Prime Minister's Department, Minister of Agriculture and Minister of International Trade and Industry.

There was also a visit by the Chief Minister of Selangor to explore opportunities of bilateral cooperation between the State of Selangor and Indonesia. In addition, there were also visits by senior government officials to Indonesia.

Malaysia and Indonesia continue to enjoy excellent cooperation in various fields.

Bilateral trade between Malaysia and Indonesia continued to grow. In 2002, total trade between Malaysia and Indonesia was recorded at US$3.1 billion, an increase of 10.7 percent from US$2.8 billion in 2001.

Indonesia's exports to Malaysia were recorded at US$2.0 billion, an increase of 14.1 percent from US$1.8 billion in 2001. Indonesia's imports from Malaysia totaled US$1.04 billion in 2002, an increase of 3.2 percent from 2001. Indonesia continued to enjoy trade surplus with Malaysia in 2002, amounting to US$992.5 million, an increase of 28.4 percent from US$773.1 million in 2001.

Malaysia's major export items to Indonesia are crude petroleum, machines and equipment, palm oil and sugar. Major imports from Indonesia are palm oil, parts and accessories for machines, paper and paperboard, coal and maize.

In 2002, the percentage share of Indonesia-Malaysia bilateral trade as compared to Indonesia's global trade had increased to 3.5 percent from 3.2 percent in 2001. Malaysia was Indonesia's 8th largest trading partner in 2002.

The total value of Malaysian investment in Indonesia in 2002 was US$71.6 million. From January to June 2003, Malaysia's investment in Indonesia totaled US$77 million with 23 projects approved. Up until June 2003, Malaysia was the 11th biggest investor in Indonesia with total cumulative value of US$10.25 billion with 545 projects.

The main investment sectors are plantation and agriculture, chemical industries and manufacturing.

Defense cooperation between Malaysia and Indonesia has remained close and friendly. There had been regular exchange programs and activities conducted in Malaysia and Indonesia between the Armed Forces of both countries. Joint military exercises on land, sea and air were also held regularly. Both sides also keep to the tradition of reciprocal farewell visits by the Chiefs of the three branches of the military.

Cooperation in the area of internal security between Malaysia and Indonesia has been enhanced in the wake of the September 11 incident and the Bali bombings.

The Malaysian and Indonesian Police continue to work closely in combating domestic and regional terrorism. The recent conferment of the award 'Panglima Setia Mahkota (Kehormat)' to General Dai Bachtiar, Chief of the Indonesian National Police, by the Yang di Pertuan Agong of Malaysia is testimony of the ongoing close security cooperation between the two countries.

Cooperation in education continues to progress smoothly. As of June 2003, a total of 1225 Malaysian students were studying in Indonesian colleges and universities. The number of Indonesian students in Malaysia until June 2003 stood at 7,503. The drive to attract Indonesian students to Malaysia has been aggressively pursued by the respective Malaysian universities and institutions.

Malaysia offers a viable alternative to Indonesian students who wish to study abroad in terms of fees, cost of living, language, culture and the proximity to home.

In the tourism sector, Indonesia is one of the major markets for Malaysia. Aggressive promotional drives have regularly been undertaken to promote shopping, education and medical tourism in Malaysia.

Road shows were held in major cities such as Jakarta, Bandung, Surabaya and Yogyakarta. In addition, Malaysia also took part in various local tourism and cultural events.

Malaysia acknowledges that foreign workers, including those from Indonesia, have helped to overcome the labor shortage in some sectors of the Malaysian economy and have contributed to the development of the country.

Generally, the legally-recruited Indonesian workers have been well received in Malaysia. They have worked hard, lived peacefully and have conformed to all Malaysian laws. Their contribution is much appreciated by the Malaysian people. We enjoy the best of relations with Indonesia and it is our desire to continue building upon this relationship.

I am confident that the excellent bilateral relations between the two countries will endure and continue to be expanded and deepened in the future. The long standing closeness and mutual trust between the peoples of Malaysia and Indonesia should ensure that the foundation of bilateral relations remain strong enough to withstand new challenges and demands imposed upon the relationship.

On this auspicious day, I call upon all Malaysians in Indonesia to come together to assist in ensuring the continuation and promotion of good relations between Malaysia and Indonesia and to pray for peace and prosperity for the peoples of both countries.