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.