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.