Indonesian Political, Business & Finance News

RI's new envoy vows to boost economic ties with Thailand

| Source: JP

RI's new envoy vows to boost economic ties with Thailand

This year Indonesia and Thailand are celebrating 55 years
since the formal establishment of diplomatic ties on March 2,
1950. On this occasion, The Jakarta Post's Novan Iman Santosa
interviewed Indonesian Ambassador to Thailand Ibrahim Yousuf, who
submitted his credentials to Thai King Bhumibol Adulyadej on
March 7, 2005. The following is an excerpts of that interview,
which took place in Bangkok.

Q: As a new ambassador, what is your first priority?

A: I will focus on economic and trade issues to help improve
our economy. Thailand has a total investment (in Indonesia) of 22
billion baht (US$564 million) and if we can improve that amount,
of course it can help reduce unemployment in Indonesia.

On the other hand, Thailand has a some $1.7 billion trade
surplus with Indonesia, from a total trade of about $5.5 billion.
Most of the surplus comes from rice and sugar exports.

I will offer leading Indonesian products such as airplanes and
train cars, and their spare parts, to Thai businesspeople.

Thailand has acquired seven airplanes from state-owned
aircraft maker PT Dirgantara Indonesia, which are currently being
used to seed clouds.

I will offer them more planes. The Thai Royal Navy is
interested in buying CN-235 Maritime Patrol Aircraft for their
patrol activities.

We also have just secured a contract to supply spare parts
(for airplanes). It was not a large deal, but if we can
accumulate smaller transactions of course it will improve the
trade balance.

But the balance is getting better each year.

As for trains, Prime Minister Thaksin Shinawatra is embarking
on a megaproject, so let's see if we can supply train cars to
them. Actually, state-owned train manufacturer PT INKA has signed
a contract to supply train cars, but the contract was canceled. I
will do my best to get it back on track.
Are there any other fields that need improvement?

We will improve our current cooperation in the education
sector, especially exchanging students and lecturers to conduct
joint research in nanotechnology. Thailand is a step ahead of
Indonesia in this field owning to a national center, while in
Indonesia research is scattered about in various institutions.

There have been offers from various universities in the
southern part of Thailand to cooperate with Indonesian
universities. The universities are Hatyai, Nakhon si Tammarat and
Prince of Songkhla. They are offering cooperation in agriculture,
Indonesian studies, medicine and tourism.

Hatyai, for example, is offering nursing training courses in
cooperation with the University of North Sumatra.

I am also encouraging more cooperation between Indonesian and
Thai provincial administrations to form sister province
relations.
What about tourism?

A: Phuket Air just launched on March 28 a direct flight three
times a week from Bangkok to Denpasar. The airline collects
tourists from European countries who want to visit Bali, and the
other way around.

They suggested that Bali and Phuket for a cooperation in
tourism.

We are also exploring the possibility of opening a ferry
service linking Belawan Port in North Sumatra to Hatyai, although
it doesn't have a port. But we can use the nearby Thai port of
Sathum.
Are there any stumbling blocks to bilateral relations?

We still have to settle the issue of an exclusive economic
zone in the northern part of the Strait of Malacca.

There are also problems with Thai fishing boats operating in
our waters. I will not call it illegal fishing, but they are
operating with improper documents. They only bring photocopies of
the documents, but they need to carry the original licenses at
all times.

Our Navy is getting tougher on them, so we have to settle this
amicably.

I believe that when we have problems we should sit down and
have a talk, and not let things escalate into open conflict.

Recently, the Thai government invited Hasyim Muzadi, the
chairman of Nahdlatul Ulama, Indonesia's largest Muslim
organization, to visit the troubled southern part of the country.
Do you believe such a visit can help solve the problems there
between the government and the Muslim population?

The problems in the south are very complex. We cannot solve
them in a day. The most important thing is that Pak Hasyim's
views can be the basis for a long-term solution.

The most important part of his visit was helping to create an
understanding of Islam. Once this understanding is established,
we can plan other steps.

We are also encouraging the Thai government to abandon
violence or a security approach, and look for a more
comprehensive approach incorporating education and economic
incentives.

Currently, the education system in the south focuses more on
Islamic religion, without giving students the skills to enter the
workforce. This has left them unable to compete in the Thai labor
market.

The Muslims in the south need to be integrated into Thai
society by changing their perception of being Muslim Malays in
Thailand to being Muslim Thais.

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