Pragmatism prevails in Dutch-Indonesia ties

By Meidyatama Suryodiningrat

JAKARTA (JP): The planned visit of Prime Minister Lubbers here beginning today has not aroused the sentimental feelings that characterized past visits by leaders from Indonesia's former colonial rulers. Instead a sense of pragmatism has emerged in interpreting the fate of Dutch-Indonesian ties.

Despite the social and historical ties spanning over three centuries, many observers are portraying the relationship in terms of practical and economic significance, while discarding the historical bonds as the foundations for future bilateral ties.

"Bilateral relations are more and more linked to mutual understanding and doing business than by development cooperation," Chris Smith, the director of the Indonesia- Netherlands Association, said.

Smith, a Sumatra-born Dutchman, believes that rational economic factors should be the basis in gauging links between countries. "As nations become more developed, mutual trade relations are becoming more important," he told The Jakarta Post.

Many observers date the crucial break in the Holland-Indonesia ties back to Jakarta's decision in March 1992 to suspend further Dutch aid. At that time Indonesia accused The Hague of constant meddling in its domestic affairs.

The suspension meant the demise of the Inter Governmental Group on Indonesia (IGGI), a Dutch-led international aid consortium, which had funneled aid to Indonesia since 1969. The IGGI was swiftly replaced by the Consultative Group on Indonesia (CGI) comprised of all of the IGGI members except the Netherlands.

With the unilateral decision by Indonesia, the focus is now on bilateral trade which is in one way very good, Smith said.

Noted historian Onghokham said improved bilateral relations means building on something concrete and strong. He believes Dutch aid, which was small to begin with, could not have played that role.

Despite having a strong clout over the IGGI, Holland was a minor contributor, giving only US$91.3 million out of the total $4.75 billion of IGGI's aid pledge in 1991.

Ong says the conflict in developmental assistance had been boiling for sometime but the insulting actions and comments of Jan Pronk, then Dutch minister for development cooperation, triggered that fateful move.

"Pronk was like a schoolmaster," he said.

The brashness of Pronk's actions seemed to conjure images of the painful past that deeply offended the Indonesian government, many members of which are veterans of the struggle of independence, including President Soeharto himself.

The unprecedented decision was met with overwhelming public support, particularly by those seniors who survived the colonial Dutch period. Ong colorfully describes their elation as "an old man's last erection."

Although the events of March 1992 created an interesting political spectacle, bilateral relations in other fields have not inherited the same misfortune.

J.B. Soedarmanto Kadarisman, Indonesia's ambassador to The Hague, who is in Jakarta preparing for the arrival of Prime Minister Lubbers, maintains that relations between the countries are currently at a high point.

Social, cultural and economic exchanges not only persist but have actually blossomed since 1992, he said.

He illustrated the significant trade growth between the two countries in 1993 when Indonesian exports to Holland increased by 30 percent, while Dutch exports here climbed by 70 percent.

Smith concurred with these statistics, explaining that there was only a minor drop in 1992. "In 1993, the improvement of trade and particularly investment was very promising," he said.

Last year, Holland was the largest investor among European countries and is the sixth largest investor in Indonesia behind Singapore, Japan, South Korea, Hong Kong and the United States.

Dutch investments last year reached over $311 million, far higher than the combined total of 1991 and 1992 investments of $279.8 million.

Soedarmanto said that as a consequence of 1992, the Dutch government is now more considerate in their association with Indonesia, showing respect and a willingness to understand Indonesia's point of view.

He urged that the old wounds be left closed and that the current state of relations of mutual understanding be maintained.

He acknowledged that there is still an emotional content existing in Dutch-Indonesia ties and identified this emotional link as the source of the often erupting pressure.

Soedarmanto believes it is this affinity that sometimes drive the Dutch to react in an overly "harsh" way to events in Indonesia.

Ong said the relations were dominated by sentimentality, claiming that Indonesia reminded the Dutch of a great colonial past. "This romanticized impact is unrealistic," he said.

Smith expressed the same feeling saying, "the Dutch like to look back, while Indonesians like to look forward."

This psychological catharsis is then no doubt the enemy that has to be overcome in viewing Dutch-Indonesia bilateral relations.

Peter Idenburg, director of the Dutch International Dialogs Foundation, said during a visit here last week that "relations between the two countries will be less emotional because the younger generation is not burdened by history."

He points to the use of Holland as a gateway to the European Community and Indonesia as a doorway to the ASEAN market as the best foundation for future relations.

Smith strongly believes that the major factor in the increase in trade links is the rational business attitude that has been taken towards the relations.

"Trade relations should be based on business factors ... it is the product that counts first," he said.