Indonesian Political, Business & Finance News

Sheikh Hasina's visit to improve ties

| Source: JP

Sheikh Hasina's visit to improve ties

Sheikh Hasina's visit to Indonesia is the first by a
Bangladeshi head of government since former president Ershad came
in 1986.

But while personal interaction at the highest level might have
been minimal in the past 11 years, ties between the two countries
have remained strong and are likely to improve further, according
to Bangladesh Ambassador to Jakarta, Zia-us-Shams Chowdury.

"The extremely close and warm relations between Bangladesh and
Indonesia go back to strong historical roots. Our experiences
during our respective wars of liberation were similar and the
travails we went through were of the same scale.

"From the time of our war of liberation, and early days of
independence, when support from friendly countries was so
important, Indonesia stood by us. We in Bangladesh remember this
very fondly and it has created a reciprocal and spontaneous
goodwill among our people toward Indonesia."

Other factors that Chowdury sees as contributing to the
current healthy relationship are the many common aspects in the
two countries' cultures, social situations and values.

"Both countries are multireligious and we both practice a
tolerant ethos for harmonious coexistence among our various
religious groups," he said.

There are differences between the two nations however, one
most notably being their respective economies stage of
development. Bangladesh is where Indonesia was more than a decade
ago, and it is keen to catch up.

Chowdury believes that "our economy is at a crucial stage and
we are hoping to enter a period of sustained growth if things go
well. Indonesia, in the past decade, has enjoyed a very bright
and vibrant spell in its economic progress."

"We feel that many of Indonesia's macroeconomic lessons have
great relevance for us and can be a useful guide as we try to
travel on the road to a better future. Our prime minister can
greatly enlighten herself from the visit."

This enlightenment will hopefully go beyond strengthening
existing ties and progress to developing new areas of cooperation
between the two countries, especially on the trade front.

The bilateral balance of trade is currently heavily against
Bangladesh. While Dhaka exports US$10 million worth of goods to
Indonesia annually, its imports from Jakarta exceed $100 million.

In order to close this gap, Bangladesh is creating what
Chowdury describes as "a very investor-friendly climateinour
country". Many countries are already taking advantage of the
"host of incentives" being offered by the new Board of
Investment.

Chowdury accepts that as ambassador, it is his job to "get
various concerned circles in both our countries to be more
actively involved in further development of our existing
cooperation."

But he stresses that this is just a facilitating role to
create the right climate, it is the private sector that must
forge the links.

To this end, "a team of businessmen will accompany our prime
minister and we will have a program with the Indonesian Chamber
of Commerce and Industry."

"I hope this will set in motion a positive momentum for
expanded economic cooperation.

"The specific aims here are to explore the scope for raising
the level of our trade and to achieve a better balance in the
trade, and to try to develop investment and joint ventures on the
basis of comparative advantages."

A cement-production joint venture already exists between the
two countries and Bangladesh is looking to boost ties in several
other areas, including infrastructure development, oil and gas,
glass and ceramics, textiles, leather and rubber products and
technology.

Chowdury said: "Indonesia's manufacturing sector is now making
an outstanding contribution to its economy and its products are
now very competitive.

"Bangladesh can learn much from Indonesia's success."

And not only in how to develop its economy. "There is also
scope for strengthening existing cooperation in a number of
socioeconomic fields, such as poverty alleviation, agriculture,
population control and human development.

"These all matter so much in the context of Bangladesh's
pursuit of a better future. We can draw important lessons from
Indonesia's experiences in these fields."

Interaction has already begun on both the trade and
socioeconomic fronts, Chowdury said.

"Almost every month, delegations from Bangladesh come here to
attend workshops and seminars in a whole host of social areas.

"And on the industrial side, several joint ventures have been
started recently, for example in cement production."

To ensure these fruitful beginnings are not wasted, "another
thing the visit will focus on is to see whether we can develop an
institutional mechanism for regular dialog which, in the context
of the changing world, is becoming increasingly necessary,"
Chowdury said.

The two countries also have many shared interests and common
concerns on the global scale. These include the Non-Aligned
Movement, the Organization of Islamic Conference and the newly
created D-8. Sheikh Hasina will take advantage of her meetings
with President Soeharto to discus these.

"Indonesia's impact in the Asia Pacific region for fostering
greater regional stability and promoting new structures of
economic cooperation is so very visible," Chowdury said.

"In our region, South Asia, Bangladesh is working hard, along
with our partners in the South Asian Association for Regional
Cooperation, to create a better environment of cooperation and
for improving the quality of life for our people.

"So, our prime minister will have many interesting issues to
discuss with President Soeharto for our mutual benefit."

The two governments are also expected to sign several
agreements on trade to further boost bilateral economic links.

Therefore, if everything goes according to plan, Chowdury sees
no reason why "we can't realize a reasonable ratio of the good
promises and potential of this important visit."

View JSON | Print