Message from the Italian Ambassador to Indonesia

H.E. Francesco M. Greco on the occasion of Italian National Day June 2, 2004

Country Profile: Italy -- June 2

Italian National Day marks the anniversary of June 2, 1946, the day on which, through a historical referendum, the people of Italy opted for a republic as its form of government, thus turning the page on dictatorship and the horrors of war.

It is also the ideal moment to assess the state of relations between Italy and Indonesia, as we regularly do every year, in the pages of this prestigious newspaper.

Another year has passed, a year in which Indonesia finds itself facing a historical electoral challenge, confirming its democratic path, which has been painfully but steadily undertaken since the political and economic crisis of 1997 to 1998.

For Italy, it is a year that marked -- also thanks to the presidency of the European Union Council it held until the end of 2003 -- a further, positive step toward closer relations with Indonesia.

During our European presidency, we firmly committed to favor dialog at all levels between Europe and Indonesia. Seminars and public debates were co-organized by the presidency, the Delegation of the European Commission and the Indonesian Ministry of Foreign Affairs with the aim of fostering better knowledge and understanding between Europe and Indonesia.

Universities, think tanks, research institutions and the media were involved in this effort. Trade opportunities, access to the European market and the enlargement of Europe were among the main topics touched by these meetings.

But I would especially like to recall two important events held within the framework of the Asia-Europe Meeting (ASEM) -- the dialog forum of Asian and European countries -- in Bali in 2003. This beautiful island, the location of a brutal terrorist attack that hit the tourist site on Oct. 12, 2002, has also become the symbol of the Indonesian government's strong determination to fight terrorism.

On July 4 and July 5, 2003, Italian Vice Minister of Finance the Hon. Magri copresided on behalf of Europe the ASEM Finance Ministers' summit. On July 24 and July 25, Italian Minister of Foreign Affairs Franco Frattini copresided with Indonesian Foreign Minister Hassan Wirajuda the ASEM Foreign Ministers' summit.

These two important events denote a most significant step in the dialog between Southeast Asia and Europe, by means of which we launched the basis for an authentic partnership between two of the world's areas of major political and economic importance.

Furthermore, at the Bali ASEM Foreign Ministers' summit, Minister Frattini and Minister Wirajuda had a long and fruitful bilateral meeting, thus providing the opportunity of discussing our countries' main issues of interest, which confirms the very favorable course of our relationship, after President Megawati's visit to Rome for the Food and Agriculture Organization (FAO) summit in 2002.

On Aug. 5, 2003, Jakarta was again hit by a terrorist attack, which again made Indonesia the center of the world's attention. In this case, our country, as it did following the Bali bomb attack , reacted calmly and fully trusted in the efficient way the Indonesian government responded to the terrorism.

Missions from Italy in the fields of trade, culture, science and technology took place as scheduled, and we also did not feel the need to modify our Indonesia travel advice. Our trust in Indonesia, its authorities and especially its people, remain unshakeable and we are confident that the country, by applying all democratic means, will be able to overcome the difficulties.

The relations between Italy and Indonesia in all sectors are very favorable and have been further consolidated this year. The countries are engaged in a regular high-level political dialog, including the meeting of directors general of the two foreign ministries.

As far as cooperation in technology and military equipment is concerned, a bilateral agreement was signed in 1997 and the first session of the ad hoc joint committee took place in 2003, opening new and wide opportunities for stronger collaboration in the sector.

Economic and commercial relations continue to progress steadily. On this very same page, the Italian trade commissioner in Jakarta provides the data on the numbers and the composition of this trade exchange. He also underlines the growing opportunities that Italy offers to Indonesian businesses interested in acquainting themselves with the Italian market and in increasing the possibility of economic and commercial cooperation with our country.

Economic and commercial cooperation between the two countries has been established since the establishment the Italian Trade Commission opened its office in Indonesia in 1981. The possibility of further collaboration remains promising. Nevertheless, we consider it as particularly encouraging that large Italian companies have returned to Indonesia and are definitely here to stay. Proof of this is the presence of companies that have generously sponsored this page. Some are those whose presence dates from long ago, while others are more recent, but still represent the confirmation of the extraordinary potential offered by this country.

It is also, however, a confirmation of the fact that Indonesia represents for Italy and its production system, a strategic choice. It is a huge market, in an area of the world (Southeast Asia), that is far from Italy but where many in Italy deem it wise to invest and take root. As the representative of a country that has long since made the strategic choice of the internationalization of its proper economy, I have always undertaken the effort to transmit the message to my authorities about the immense potential of investing in Indonesia. And I am confident that Indonesia will be able to promote the general improvement of its investment climate and that this will be the main sector of intervention by the government. The Indonesian people -- via the actual, historical, electoral process -- are democratically entrusting it with the responsibility of governing the country.

Italy continues to demonstrate her support of the development of Indonesia. Last year, we launched our development-support program for Indonesian small and medium enterprises. The assistance program includes the provision of a soft loan worth 5.5 million euros to help develop a Footwear Training Center in Sidoarjo, East Java.

The Indonesian government has launched a tender for the operation of the center, which we hope will start running in the course of this year.

It is a sector in which Italian know-how is renowned worldwide. While, in this country, it has great production development and it highly labor intensive. Thus, we are sure the center will be of great benefit.

However, Italian support of Indonesian development is far- reaching. As stated in the last meeting of the Consultative Group on Indonesia (CGI) in December 2003, Italy praises the remarkable progress accomplished by Indonesia in the macroeconomic field with the implementation of structural economic reforms toward stability, as announced by the government in its important strategy document, the White Paper.

In that framework, on Dec. 4, 2003, Italy -- as a member of the Paris Club -- and Indonesia, have finalized the procedure for the rescheduling of a further tranche of bilateral debt of Indonesia for an amount of over US$30 million. It was the fourth Bilateral Agreement in this field. As an immediate follow-up to this agreement, we have established contact with the Office of the Coordinating Minister for the Economy of Indonesia for a debt-swap agreement, which would allow Indonesia to implement social-development and environmentally friendly projects. We believe that this is a significant contribution to the development of Indonesia and -- as an implementation of Italy's general policy toward debt relief, which recently led to the total cancellation of the debts of many poor countries to us -- it represents a concrete sign of the attention we pay to the welfare of Indonesia, and to its inhabitants, especially the most vulnerable ones.

In the cultural field, the Italian Cultural Center in Jakarta (Istituto Italiano di Cultura) continues to intensively promote cultural activities, with the aim of improving knowledge of the Italian language and culture among the Indonesian people.

These activities take place in Jakarta and in Indonesia's major cities, through Italian language courses organized at the Institute itself, with the involvement of Indonesian Universities.

This year, 170 students in Jakarta are taking part in Italian language courses, proof of the increasing interest of Indonesian students, and the public in general, toward our language and culture.

To respond to this demand, 166 months of scholarships to learn our language have been granted to Indonesian students, in both 2003 and 2004. Moreover, a series of intensive seminars and workshops in the framework of bilateral agreements on the scientific and technological field, have also been held to explore further cooperation in this fundamental and strategic sector.

Our mission is of important significance: in brief, we must seek to diminish the distance that still interferes in the establishment of a better understanding between our two countries, our systems, our cultures.

Information and technology, beneficial tools of the global world, are on our side, assisting us in attaining this goal. It is, therefore, up to us to exploit them for our mutual advantage, enhancing the values of our society, namely democracy, peace and liberty. Indonesia is currently achieving a steady progress toward political stabilization, and it represents an appreciated model of a peaceful and multiethnic society.

Italy is looking forward to seeing the consolidation of the constitutional reforms and the implementation of reconciliation processes within a united and peaceful Indonesia. The steady continuation of this path will allow Indonesia to consolidate its role as a solid partner of Europe, which deserves to be recognized within Asia and more generally, in the Islamic world.

Italy feels that her own history, her culture and geographical position oblige her - even more than permit her - to intensify her role as an ideal bridge between East and West. This is the spirit with which we look at Indonesia, with utmost trust in her capacity to continue in the path toward consolidating democracy. In its elections year, this country is going through a paramount test. The process that Indonesia is undergoing this year has been, so far, a model for the whole world.