Tue, 15 Feb 2005

The Netherlands to renew economic tie with Indonesia

Rendi A. Witular, The Jakarta Post, Jakarta

The Netherlands is planning to renew its economic ties with Indonesia through the provision of a number of incentives and assistance. This would include support for the development of the country's agriculture and fishery industries, as well as the reconstruction of tsunami-stricken Nanggroe Aceh Darussalam.

"We'd like to renew our relationship with Indonesia under the new government. I will offer my support for the reconstruction of Aceh and suggest better cooperation between us," said visiting Dutch Minister of Economic Affairs Laurens Jan Brinkhorst after a meeting with Vice President Jusuf Kalla on Monday.

Brinkhorst said among concrete efforts provided by the Netherlands would be assistance for Indonesian fishermen, in improving the quality of their products in a bid to prevent them from being rejected by the European market.

European countries have often rejected Indonesian shrimps due to their high level of antibiotics -- which may cause diseases in human beings -- following the lack of laboratory facilities that enable fishermen to comply with the international market standard.

Brinkhorst also said the Netherlands would assist and support Indonesia in the upcoming World Trade Organization (WTO) meeting at the end of this year in Hong Kong, in persuading the European Union to reduce its import tariff on agricultural products.

"The Netherlands, as part of the EU, has always been in favor of trying to reduce import tariffs imposed on developing countries, including Indonesia, in the framework of the WTO," he said.

During his visit to Indonesia, Brinkhorst signed a memorandum of understanding (MOU) with Coordinating Minister for the Economy Aburizal Bakrie to extend the program on Emerging Markets Cooperation.

The program is aimed at achieving sustainable economic growth and poverty alleviation via cooperation between the Dutch and Indonesian private sectors.

Regarding the reconstruction of Aceh, Brinkhorst said the Netherlands was interested in granting local fishermen used fishing vessels.

The program is part of the EU's policies to help tsunami- affected countries by providing advanced fishing facilities, as well as widening the market for fish products by reducing import duties and increasing product quotas.

In addition, the Netherlands private sector is exploring the possibilities of reconstructing damaged seaports as well as improving coastal management in the area, since the Netherlands has expertise in canal and water management, said Brinkhorst.