RI still important to Dutch

RI still important to Dutch

By Mohammad Sadli

The following is the reflection of a one-week visit to Holland
for the conferment of an honorary doctorate, by the Erasmus
University in Rotterdam, on Prof. Sumitro Djojohadikusumo,
Indonesia's most senior and prominent economist.

Rotterdam (JP): During the week Nov. 4 to Nov. 10, 1995, there
were numerous opportunities to meet with the Dutch community.

Preceding the ceremony of bestowing an honorary doctorate on
Prof. Sumitro, Prof. S. Cnossen of Erasmus University organized a
seminar on Indonesia's economy. Drs. Martin Sanders of the
Amsterdam Indonesia House and Indonesia Netherlands Association
organized another two meetings, which were attended by a fair
amount of Dutch and Indonesian participants, such as
businesspeople, academics and students.

Indonesian board members of the Indonesia-Netherlands Forum,
who accompanied Prof. Sumitro, also used the opportunity to meet
with their Dutch counterparts, including Messrs. Bukman, Deetman,
Brinkhorst and Loudon.

The first impression gained in Holland was that there seemed
to be considerable interest shown toward Indonesia. Historical
ties and nostalgia are part of the reason, while another part is
genuine business interest.

In Holland's official foreign policy Southeast Asia (including
China) is a declared priority field because it is the most
promising region in the world in which to do business. On Nov. 10
there was a conference on China, followed by one on Indonesia,
both held at the same conference hall of the Kamer van Koophandel
in Amsterdam.

The Dutch like to present their country as a "gateway into the
European market", because approximately 70 percent of Indonesia's
exports to Europe pass through Rotterdam's harbor. Moreover,
Schiphol is a very important transit point for air cargo. One
Indonesian idea relates to adding value by using the area around
Rotterdam and Schiphol as a site for further processing of
Indonesian goods.

To get an idea of what would be possible, a small survey could
reveal what Indonesian competitors have already done. Our Thai
brothers, for instance, who used to be ahead of Indonesia in the
export business. Food processing and various assembly operations,
like furniture, come to mind. The large Indonesian, Indo-Dutch
and other Asian communities living in Holland should be invoked
to strengthen the new ties.

Reciprocating, the Dutch like to portray Indonesia as a
"gateway into the ASEAN market and beyond". Apart from the
emotional, or goodwill, content of such a proposition, the
relative ease with which Dutch people move around Indonesia may
be an incentive for the location of Dutch ventures trying to get
a share of the beckoning Asian market. In the decades to come,
the Indonesian market will be of formidable size, with always
some protection, if only because of transport costs.

In the 1970s and 1980s, Singapore was a more sensible location
for an "export platform", as exemplified by the choice of
Philips. But Singapore is running out of labor and land for
manufacturing sites, and we have seen recently the big Japanese
electronic firms moving into Jakarta's new industrial estates.

A number of Singapore assembly and manufacturing operations
have also made expansions into the Batam industrial area, which
is Indonesian territory adjacent to Singapore. Batam island is
part of the Singapore-Johor-Riau "growth triangle", a relatively
new political-administrative concept of cross-border locations
for industries and other businesses with incentives in the nature
of fiscal and administrative.

There will be more growth triangles in the ASEAN region, but
the host countries will have to see to it that some domestic
rules are loosened; the idea is to create some kind of an ASEAN
regime, or its forerunner. Meanwhile, Jakarta and Surabaya
locations (for example industrial estates) are still better,
certainly to access the domestic market.

Interest was shown at those Holland meetings for the
establishment, in Indonesia, of Dutch high-tech companies
interested in the Southeast Asian market. They have never worked
in Asia and, of course, they could consider other country
locations. But the historical ties with Indonesia certainly puts
this country high on the list.

There is a visible a-symmetry in the feelings or sentiments in
Holland and Indonesia. In Holland there is some nostalgic feeling
towards its old colony and a renewed interest is shared by old
and young.

Not so in Indonesia, where the nostalgia is strong among the
older generation. For Indonesia's younger generation Holland does
not have a special meaning relevant to their present and future.
They do not speak or understand Dutch.

The children and grandson of Prof. Sumitro were terribly bored
attending the two hours Dies Natalis ceremony, where their
patriarch received his ribbon and diploma in a solemn ceremony in
a packed auditorium.

As a university event, Dutch was used, sprinkled with
greetings spoken in good Indonesian by the promoter of the
honorary degree, Prof. Cnossen. A gamelan was provided by the
Indonesian Embassy and played, in part, by the Dutch Leidenaars,
providing the right ambience.

Nevertheless, those young guests from Indonesia were bored
stiff having to sit through a dies rede (Dies Natalis scientific
oration by a professor) of half an hour. They didn't understand a
word, including Prof. Cnossen's laudatory oration and Prof.
Sumitro's acceptance speech, but they sat in awe during the
ceremony.

For the older generation, Holland is a favorite entry point
into Europe, but Indonesia's younger generation prefer to go to
the U.S., Japan or Australia.

Prof. Dorodjatun Koentjarajakti, Dean of the Economic Faculty
in the University of Indonesia, who came along to honor the dean
of Indonesian economists, said in one of the meetings that, in
the future, Indonesia would not feel comfortable if the economy
were dominated by large Asian countries, and that Europe would be
very welcome, to provide a better balance.

The sentiments expressed by Prof. Dorodjatun echo those of the
(non-Dutch speaking) younger generation. For him, this journey
was only his second visit to Holland after some 20 years.

He says he would love to escort a group of young Indonesian
businesspeople on a "discovery tour of Holland". These younger
businesspeople should know Holland better and make good use of
its tremendous goodwill, for Southeast Asia and Indonesia in
particular.

The writer is a prominent economist and served as member of
the cabinet several times.

Window: If for the older generation Holland is a favorite entry
point into Europe, the younger Indonesia's generation prefer to
go to the U.S., Japan or Australia.