New Russian envoy vows to boost trade with Indonesia

As Indonesia and Russia struggle to strengthen their young democracies and improve bilateral relations, the defense sector forms only one dimension of the opportunity that beckons the two nations. But Russia wants its relations with Indonesia to expand into other spheres. The new Russian Federation's Ambassador Mikhail Mikhailovich Bely, who submitted his credentials to President Susilo Bambang Yudhoyono on Nov. 25, spoke to The Jakarta Post's Veeramalla Anjaiah recently on a wide range of issues. Here are the excerpts:

Question What is the present state of Russian and Indonesian relations? Answer The relations between Russia and Indonesia are warm and cordial. During the Sukarno regime, the relations were excellent. But after some ups and downs during the Cold War period, the relations took off again on a new foundation in the 1980s. Since then, they have been growing at a tremendous pace.

On a political level also, our relations are very good. Last year, Indonesia's then president Megawati Soekarnoputri visited Moscow. Last month, Russian President Vladimir Putin had a telephone conversation with the newly elected Indonesian President Susilo Bambang Yudhhoyono and congratulated him for his victory in the first direct presidential elections.

On Nov. 20, 2004, President Putin and President Susilo met informally on the sidelines of the Asia-Pacific Economic Cooperation meeting in Santiago, Chile, to discuss ways and means to improve cooperation and relations between the two countries. These high-level contacts reflect the nature of our relations.

Moreover, Russia and Indonesia have so many similarities and been facing common problems. What are they?

Russia and Indonesia are big democratic nations. We have multicultural, multireligious and multiethnic societies. Both countries are struggling to reform themselves in all areas after a long period of suffering under authoritarian regimes. They are very rich in natural resources and have huge potential to boost their relations to new heights.

We have the same natural resources like oil and gas and others (Russia, the world's second-biggest oil producer after Saudi Arabia, while Indonesia is the president and the only member of the Organization of Petroleum Exporting Countries, OPEC, from Asia). In the oil and gas sector, sometimes we are competitors.

We are facing the same problems of the environment, corruption, unemployment, money-laundering and separatist movements. Both are major victims of terrorism.

Russia looks at Indonesia as a strategic partner in the definitive context of new perceptions that are beginning to determine the course of the ongoing global fight against terrorism.

In foreign policy matters, like Iraq and the Middle East issue, we have no major differences.

How do you view the growing defense ties?

This is the area where we have achieved a lot. Our defense cooperation with Indonesia goes back to the Sukarno era. Last year, Indonesia bought four advanced Sukhoi fighter planes. We have offered several more defense systems to Indonesia. We are waiting for Indonesia's response.

Another important thing is that Russia does not attach any strings in relation to its arms sales and cooperation in the defense sector with any country.

Russia is willing to train Indonesian military personnel in using Russian weaponry and transfer the technological know-how. Indonesia can buy our defense equipment on easier terms.

At least 24 Russian defense companies participated in the recently concluded Indo Defense 2004 Expo in Jakarta.

You have come to Indonesia at a time when Moscow and Jakarta are stressing the need for greater bilateral cooperation in various fields. What role do you envisage for yourself as the new Russian Ambassador in this context?

My first and foremost mission is to strengthen our existing bilateral relations. When Indonesia's foreign minister Hassan Wirayuda began his second term, he revealed that there would be continuity in Indonesia's foreign policy under President Susilo's government. The word continuity is very important. So I have to start my work from what is already there.

In spite of the good state of relations in political and defense fields, I have to admit that the existing economic relations between the two countries are not enough to form a strategic partnership.

The present total bilateral trade between the two countries is around US$200 million. It's almost negligible, given the countries' economic potential. Just trading fertilizers, tea, palm oil and steel is not enough.

Russia's main exports to Indonesia consist of fertilizers. steel, military hardware and oil.

We import palm oil, tea, spices and fabrics from Indonesia.

We have to move further. This is the area (economic ties), in which I will focus all my energies during my tenure in Jakarta. What measures are to be taken to accomplish your mission?

First, I will identify the areas in both countries where we have huge potential to improve. Then, I will connect the people from both sides to move things.

For example, Russia's major aluminum producer, Russal, the world's fifth largest aluminum company, approached me recently and revealed its plans to invest in Indonesia and other countries in Southeast Asia. I will talk to the relevant ministries and people in Indonesia and arrange a meeting between the Russian company and Indonesian authorities.

Russia is very good in building thermal, hydro and nuclear power plants. We will explore the possibilities of building nuclear power plants in Indonesia in line with our policy of the peaceful use of nuclear technology. Next month, our Atomic Energy Minister is coming to Indonesia to discuss the matter with the Indonesian counterparts.

Russia and Indonesia had already agreed through several memorandum of understandings to cooperate in agriculture, fisheries, space technology, military technology and other areas. I will also try to improve our cooperation in these areas.

It seems there is a wrong perception among some Indonesians about Russia because of our past communist legacy. Now, Russia is completely a different country. I will try to remove this image and encourage Indonesian students to study in Russian educational institutions, which are renowned for their academic excellence.

Another important thing is President Putin's planned visit to Indonesia.

Last month, President Susilo extended an invitation to Putin to visit Indonesia during a telephone conversation and Putin accepted the invitation. Putin's visit, which will be the first ever visit by a Russian leader, will certainly open a new chapter in Russia's relations with Indonesia, a major power in Southeast Asia.