RI-British business ties centuries old
RI-British business ties centuries old
Britain's commercial links with Indonesia extend back several hundred years to the beginnings of European mercantalist expansion. Although its colonial period is now effectively long over, Britain remains one of the world's leading trading nations and has very considerable overseas investments. Today, the members of the Indonesian-British Business Association (IBBA) represent the continuation of that historical progression.
As we recognize the official birthday of Britain's sovereign Queen Elizabeth II, it is well to remember that trade between Indonesia and Britain probably began during the reign of her earlier namesake more than 400 years ago.
Sir Francis Drake visited Java during one of his circumnavigations of the globe during the reign of Queen Elizabeth I in the 16th century. It should, therefore, be no surprise that IBBA membership includes companies that were established in Indonesia for more than 170 years.
In the context of the long commercial relationship between the two nations, IBBA is still a young organization. It evolved in its present form in 1995 from what had been known as the Indonesian-British Association, established in 1975. During earlier periods, there had been other predecessor groups formed to support British business interests in Indonesia.
The principal objective of IBBA is to support trade and investment relations between Britain and Indonesia. Most IBBA members are companies and organizations with a fixed presence in Indonesia. Even in these troubled times, membership numbers have remained high.
IBBA members include not only British-owned companies and individuals but also Indonesians eager to develop business contacts with Britain. IBBA enjoys an excellent relationship with the Indonesian Chamber of Commerce and Industry (KADIN). IBBA's vice chairman, Suryo Sulisto, chairs the KADIN Indonesia Komite Inggris.
Based on statistics from the Capital Investment Coordinating Board, the cumulative investment approvals for British companies from 1967 to May 1998 amounted to US$34.2 billion, a figure exceeded only by Japan. They extend across many sectors, including petrochemicals, industrial chemicals, manufacturing, food processing, agribusiness, mining, oil and gas, tobacco, banking, insurance, financial services, securities trading, power generation and distribution, engineering and construction. British companies involved in these sectors are bringing to Indonesia foreign capital, expertise and employment.
Indonesia is currently in a state of crisis and uncertainty. Since July last year, trade and investment have been severely affected by the spread of the "Asian Contagion". Whatever immediate difficulties may arise, British business long-term commercial goals and objectives in Indonesia will not easily be deflected. Some companies may have to make short-term adjustments to cope with the present uncertainty. However, we believe few, if any, of IBBA member companies are likely to leave Indonesia.
IBBA is constantly endeavoring to improve and extend its services to its approximately 300 members. As well as its regular monthly breakfast and lunch meetings, it now has several active sector groups covering infrastructure, energy, retail/manufacturing, aerospace and financial services.
Members are also kept abreast of activities and current developments through the monthly newsletter. Keeping members informed during this period of so much change is of crucial importance.
To respond to ever-greater demands on its services, IBBA moved very recently its Secretariat to a new better-serviced larger office which opened for business on June 1. The new Secretariat is located at the World Trade Center, 13th floor, Jl. Jend. Sudirman Kav. 31, Jakarta 12920. New members are always welcome and any enquiries should be made directly to the Secretariat at telephone number 5229453 or fax number 5279135.