RI needs to make changes or it might be left behind

Japanese Prime Minister Junichiro Koizumi has visited Indonesia three times since Ambassador Yutaka Iimura became Japan's envoy to Indonesia in May 2002. Amid preparations for President Susilo Bambang Yudhoyono's visit to Japan this week, the ambassador spoke with The Jakarta Post's Kornelius Purba about developments in the past three years. The following is an excerpt of their conversation:

Question: How do you see major issues in Indonesia over the last three years?

Answer : There are several events or developments which interest me deeply.

First, the development of democracy. Not long after I arrived in Jakarta the 1945 Constitution had been amended; it was the fourth amendment of the Constitution. And Indonesia decided to have direct presidential elections. In 2004, you had a series of elections, the legislative and presidential elections, which were conducted peacefully and fairly.

Second, for me personally, the Aceh peace process is very special in my heart and mind. In 2002, a COHA (Cessation of Hostility Agreement) was agreed on between the government of Indonesia and GAM (Free Aceh Movement), thanks to efforts by Indonesian leaders, including the then coordinating minister for political and security affairs Susilo Bambang Yudhoyono. And Japan, together with the U.S., the European Union and the World Bank, hosted the Tokyo Conference on Peace and Reconstruction of Aceh.

We expressed our readiness to work for the peace process and the reconstruction of Aceh. Unfortunately, this peace process collapsed in 2003 and then a military emergency was declared there.

Now the new government has revitalized the peace process. Together with other countries we are trying to support the peace process. My government representatives met with GAM leaders in Stockholm, to encourage them, to tell them that the international community emphasizes the importance of peace and the territorial integrity of Indonesia. We do not support the independence of Aceh and it is high (time) to engage in the peace process.

What are some of the other issues?

The third major event is the earthquake and tsunami in Aceh. I have visited Aceh five times since the tsunami. I am really shocked by the situation. The last time I visited Aceh was with PM Koizumi. I was very impressed with the development there. On the other hand, many things have to be done for the reconstruction and rehabilitation of Aceh. As a country with similar geological conditions, Japan, like Indonesia, often faces earthquake and natural disasters so we have a great deal of sympathy for Indonesia.

I have spent nearly 50 percent of my energy working with the Indonesian government, not only on emergency work but also for the reconstruction of Aceh.

And then the terrorist bombings in Bali, at the Marriot Hotel and the Australian Embassy shocked me.

What is your opinion of Islam here?

Outsiders can have misunderstandings, and indeed do have misunderstandings, regarding Islam in this country. They can think that Islam in Indonesia is extreme, radical and supports terrorists. But in fact moderate Islam is the majority religion in this country. Islam here is moderate, healthy and constructive, and is trying to modernize these elements. And your government has efficiently investigated those bombings.

How about the country's economic problems?

This is very important for the ongoing process of development, that is, the determination of your government to improve the investment condition in this country. This is very important, crucial for the future development of Indonesia. Unless Indonesia achieves higher sustainable economic growth with private investment, it is going to have to cope with losing its competitiveness as an investment destination for foreign companies. The government is determined to change.

Of course it is very difficult to deliver change, because it covers various areas, but now we are moving forward. We have established an investment forum between Japan and Indonesia, and when the President goes to Japan he will be bringing strategic actions for investment improvement.

Could you elaborate?

Giving the importance of private investment, we are now working on improving this through the investment forum. We are drafting an investment strategic plan, which covers basically four areas: One is taxation and customs, the second is labor, the third is infrastructure and the fourth is the international competitiveness of SMEs (small and medium enterprises).

And we are listing 32 specific measures to be taken jointly by Japan and Indonesia so that Japan can invest more, as Japanese investors get better incentives to invest in this country. In order to do this Indonesia needs to make changes, otherwise Indonesia might be left behind by the global competition.

Regarding the East Asian Community, there are different opinions among ASEAN members. What is your government's stance on Indonesia's position that countries like Australia and New Zealand, and not just the ASEAN + 3, should be included in the new grouping?

Japan's position is very similar to the position of Indonesia. East Asia community building, particularly with this summit to be held in Kuala Lumpur, is very important for all countries in the region. The question is not whether we accept this community building or not, but what kind of community we want to see. And in this sense, there were originally two schools of thoughts. One was that we should only have the ASEAN+3 (ASEAN plus China, Japan and South Korea) as members of this summit. The other school said we should have a more inclusive community.

Japan, Indonesia and Singapore have been looking for this inclusiveness from the beginning. And now there is an emerging consensus that this community and summit should be inclusive.