Mon, 14 Oct 1996

RI-Germany maritime cooperation on the rice

JAKARTA (JP): The maritime cooperation between Germany and Indonesia has increased significantly and will bring mutual benefits to both countries as the Asia-Pacific region leads toward being the center of global economic growth, an ambassador says.

Indonesian Ambassador to Germany Hartono M. said here over the weekend that Indonesia and Germany have built strong ties in the maritime sector for decades and they are expected to strengthen the cooperation for their mutual benefit in the anticipation of the Asia Pacific era.

Hartono made the remarks on the prospects of maritime cooperation between Indonesia and Germany in connection with the launching of the Bukit Siguntang passenger vessel over the weekend in Papenburg, Germany.

The 14,800-ton vessel with a 2,003-passenger capacity was bought by the state-owned shipping line PT Pelni from the Papenburg-based Meyer Shipyard.

Hartono added that the Asia Pacific region will represent half of the growth in the global economy; generate one third of the world gross products by 2000; and the growth will boost port and shipping businesses in Indonesia.

He said Indonesia will become the key country in the region, given its strategic position along the sea routes linking economic centers on the Asian mainland, the Australian continent, New Zealand and the rest of the South West Pacific island states.

"For instance, in 1985, Indonesia's sea routes, including the Sunda Strait, Lombok Strait, Ombai Strait and Wetar Strait, accounted for nearly 60 percent of all ship movements to and from Australia. By 2000, sea routes in Indonesia will likely be among the most important and the most busiest in the APEC region," he said.

The Asia Pacific Economic Cooperation (APEC) forum groups 18 Asia Pacific countries aiming to promote free trade in the region.

Indonesia is thus committed to ever enlarging its shipping fleet and develop its shipbuilding industry in Surabaya, East Java.

Hartono said Indonesia has targeted to create a domestic fleet capable of transporting 167 million tons, modernize and add to Indonesia's existing ocean-going fleet to secure capability of transporting 10 percent of the nation's total overseas-bound cargo, and operate about 35 percent of "pioneer" ships to outer- island destinations within the archipelago.

"To attain these targets, Indonesia has cooperated with technologically-advanced countries, with Germany being one of the most important one," he said.

Germany is aware of the significance of the Asia Pacific region and the key role to be played by Indonesia.

In 1993, Germany launched a new policy on Asia, which outlined the country's strategy in expanding its economic activities in the region, including increasing its maritime-related business with Indonesia.

Hartono said the maritime cooperation between both countries dates back to 1959, when Indonesia bought a 2,300-ton multipurpose vessel called Watampone from the Meyer Shipyard. A total of 25 vessels have so far been bought by Indonesia from the shipyard, including 17 passenger vessels for PT Pelni, he said.

The 17 passenger vessels are Kerinci (delivered in 1983), Kambuna (1984), Rinjani (1984), Umsini (1985), Kelimutu (1986), Lawit (1986), Tidar (1988), Tatamailu (1990), Sirimau (1991), Awu (1991), Ceremai (1993), Dobonsolo (1993), Leuser (1994), Binaiya (1994), Bukit Raya (1994), Tilongkabila (1995) and Palindo Jaya (1995).

Encouraged by the prospects of Indonesia's shipbuilding, Meyer Shipyard agreed to cooperate with PT PAL to build small-type passenger vessels. The joint cooperation has produced, among others, the 500-passenger Pelindo Jaya vessel, which was launched in 1995.

"In conclusion, maritime cooperation poses challenges and offers good prospects in the framework of the broader Indonesia- Germany relationship," said Hartono

"Chancellor Helmut Kohl and his German economic delegation will visit Indonesia at the end of October. The visit is hoped to provide momentum for enhancement of maritime cooperation and other realms beyond shipbuilding," he said.

According to Indonesia's Central Bureau of Statistics, Indonesia's exports to Germany increased by 7.2 percent to US$1.26 billion last year from $1.17 billion in 1995, while its imports from that country rose 9.3 percent to $2.47 billion from $2.07 billion.

-- Indonesian Embassy in Germany