Indonesian Political, Business & Finance News

Message from the Ambassador of Finland

Message from the Ambassador of Finland

Finland and Indonesia are very different countries and distant
from each other. Yet our bilateral relations have a long history,
and there is great potential to develop them further.

Finland recognized the newly independent Indonesia in 1950,
and diplomatic relations were established in 1954. As it happens,
25 years will have elapsed next year from the establishment of
the resident Embassy of Finland in Jakarta.

The backbone of the bilateral relationship is trade. The two-
way trade was on a path of rapid increase until the present
Indonesian crisis. Last year, Finnish exports to Indonesia
reached the level of US$500 million, an all-time record.
Indonesia is the fourth most significant destination for Finnish
exports in East Asia, trailing only China, Japan and Hong Kong.
The current year has naturally been difficult but trade in both
directions has been sustained at remarkable levels.

Trade between the two countries has gone through a major
diversification in the past few years. Traditional items have
been complemented by products in telecommunications, power
generation, chemicals and water management, just to name a few
specifics.

The bulk of Finnish exports to Indonesia, however, continues
to consist of machinery and equipment for the Indonesian forest-
based industries. Practically all Indonesian pulp-and-paper mills
have a more or less substantial share of Finnish state-of-the-art
technology and know-how invested in them.

We are keen to continue seeking, with our Indonesian partners,
ways to improve the sustainability of Indonesian forestry.
Interesting and valuable experiences have been gained in working
together with local communities. This has led to enhanced living
conditions for the local people at the same time as more solid
resource base for the forest industries has been developed in an
ecologically sound manner.

More and more, Indonesia has caught the attention of potential
Finnish investors. Many companies are seeking strategic partners
in Indonesia. The present conditions are, of course, not ideal
for far-reaching decisions on either side. Major new initiatives
are, however, looming as soon as the darker clouds on the
Indonesian economic horizon begin to dissipate.

What is equally remarkable is that the "softer" aspects of the
Finnish-Indonesian relationship are getting stronger and more
pronounced. Various kinds of cultural exchanges take place, and
more are brewing. Music is performed and visual arts exhibited at
both ends.

The coming year marks the 150th anniversary of the Finnish
national epic, the Kalevala. Its appeal is universal, and its
verses are enjoyed in a great variety of languages in all
continents. Why not make it available in the Indonesian language
and thus build another bridge between our two nations?

The people of Finland have been following developments in
Indonesia with compassion and concern. We hope Indonesia will be
able to overcome its economic crisis soon and thus contain its
adverse consequences. High among these is the unprecedented rise
in poverty. Special attention needs to be attached to the fate of
the youngest generation, children whose nutrition and education
have been jeopardized.

We encourage Indonesia to continue on the path of reforms
toward a more open and democratic society. A general election
genuinely free and fair would be a milestone in this process. The
keys to this development are, of course, in the hands of
Indonesians themselves. Finland, together with many other
European Union member states and other countries, stands ready to
assist Indonesia in this complex task, should we be asked to
help.

The events of this year have also led to regrettable incidents
which have caused a lot of suffering and loss of life. While
expressing our sympathies and deepest condolences to the families
of the victims, we urge Indonesians to seek national
reconciliation through dialog and moderation.

Finland will be among the 11 member states of the European
Union to join the Economic and Monetary Union in a month's time.
Next January marks the formal introduction of the euro as the
single currency among participating member states. Through a two-
year transition period, the European banking and finance industry
and European companies will gradually change their operations
into the euro. Finally, in the beginning of 2002, the euro will
be introduced in the form of cash money, banknotes and coins. By
that time, the euro will have become a major invoicing and
accounting currency worldwide.

In July 1999, Finland will take over the rotating Presidency
of the European Union for six months. That places us in a unique
position when European and Southeast Asian countries welcome the
21st century in a year's time.

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