Pragmatism prevails in Dutch-Indonesia ties

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.