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.