The Philippines and Indonesia enjoy close ties
The Philippines and Indonesia enjoy close ties
Friends in need are friends indeed: the Philippines and Indonesia are no doubt learning the truth of this statement during the economic crisis. Philippine Ambassador to Indonesia Eusebio A. Abaquin sat down with The Jakarta Post to discuss the two nations' long historical ties and ways they can work together in battling the hardships.
JP: Do you see a new era dawning in the Philippines with the election of Joseph Ejercito Estrada to the presidency?
Ambassador Abaquin: President-elect Estrada has announced that he will continue the liberalization and deregulation polices of the Ramos administration. The opening up of the economy will continue. So will the leveling of the playing field.
President-elect Estrada also said that in his first 100 days in office, he will focus on stemming criminality, enhancing food security and achieving growth with equity. Expect the Philippines to be more stable as its next president received a popular mandate that shows he is overwhelmingly supported by the people.
The Philippines' next president will surprise many of his critics with his competence and decisive leadership, especially since those who do not know him well have such low expectations of him. And this is good news for investors.
JP: Please trace the long historical base of bilateral relations between Indonesia and the Philippines.
Ambassador Abaquin: The relations of our peoples antedate our histories as nation-states and even our colonial history. Trade, migration and intermarriage among our various ethnic groups were common even before the Majapahit and Sriwijaya empires. That is why we have a natural cultural affinity with each other. Even during the colonial period, Commonwealth president Manuel L. Quezon visited Batavia in 1934, 1936 and 1938.
Diplomatic relations between us were established on Nov. 24, 1949. There are about 26 bilateral agreements between the Philippines and Indonesia. We have an extradition treaty, agreements on forestry and fisheries, the avoidance of double taxation, among others. Together with Malaysia, Indonesia and the Philippines formed the MAPHILINDO and, later, the Association of Southeast Asia (ASA) before the five founding states established the Association of Southeast Asian Nations (ASEAN) in 1967.
More recently, our two countries established the RP-RI Joint Commission for Bilateral Cooperation (JCBC) in 1993 during the state visit of President Ramos to Indonesia. The JCBC has been an effective bilateral mechanism for addressing common issues. It held its first meeting in Manila in September 1995, and its second meeting in Jakarta in February of this year.
JP: What is the current status of relations between Indonesia and the Philippines? How can they be enhanced in the future for the benefit of both lands?
Ambassador Abaquin: Relations remain strong and among the closest in ASEAN. This is due to an unshakeable tradition of goodwill between our leaders and our people.
The Philippines is very grateful for Indonesia's crucial role in making possible the historic peace accord between the Philippine government and the Moro National Liberation Front. We owe Indonesia a debt of gratitude for sponsoring the Philippine membership in the Non-Aligned Movement (NAM).
Indonesia recently hosted the second JCBC, as I mentioned earlier, where issues such as cooperation on forestry and fishing and resolving migration and border-crossing issues were addressed with greater resolve.
The Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Triangle remains a successful example of subregional cooperation and an important building block for regional economic integration.
Defense cooperation remains vibrant with defense exchanges and visits of high-ranking defense officials, such as the recent visits of Philippine Armed Forces Chief of Staff General Clemente P. Mariano and Defense Undersecretary Feliciano Gacis.
Indonesia has a new government and the Philippines will have a new government come June 30. With the announced retention of foreign affairs secretary Domingo Siazon, Jr., the consistently excellent relations between our countries can be expected to flourish even more.
JP: Describe the opportunities for regional cooperation and assistance given the monetary crisis hitting Asia.
Ambassador Abaquin: The regional crisis has exposed the weaknesses as well as the strengths of national economies in Asia. It is a situation ripe for closer cooperation and broadening economic linkages.
Intensifying cooperation at a subregional (BIMP-EAGA) or intralocal level to identify and match resources and comparative advantages in specific areas should be pursued. For example, cheaper raw materials can be sourced from Indonesia. Cheaper but high-quality human resources in certain sectors can be provided by the Philippines.
We can also improve the balance of trade in the medium term when both our economies have recovered sufficiently -- Indonesia has enjoyed a growing trade surplus with the Philippines.
The Philippines is holding its own during the crisis, although it too is negatively affected. Our economy managed a 2.5 percent GNP growth in the first quarter of this year and we expect to achieve economic recovery by next year. We have also exited from 35 years of IMF (International Monetary Fund) tutelage of our economy in March this year.
JP: What are concrete ways the Philippines, relatively better off than Indonesia, can help its ASEAN neighbor in its time of need?
Ambassador Abaquin: There can be cooperation on mechanisms for preventing the crisis from recurring. ASEAN finance ministers drew up a plan for an economic monitoring system whose temporary secretariat will be at the Asian Development Bank in Manila. The possibility of countertrade and trade using ASEAN currencies are also being studied. ASEAN mutual support and solidarity are vital in seeking financing from creditor countries and institutions.
Another way is by example. Economic liberalization and deregulations, for instance. We have been undertaking reforms since the time of President Aquino in dismantling state and private monopolies, in separating business from the state, and in creating a policy environment conducive to growth with equity. The reforms Indonesia has been undertaking at a more accelerated pace are certainly steps in the right direction.
The Philippines is donating to the Indonesian people US$1 million worth of medicines, which we have been sending in tranches.
Another area is education. A lot of Indonesian students are now finding it very difficult to study abroad in Australia, Singapore or the U.S. because the cost of education has become very expensive during the monetary crisis. Considering that we offer a quality education based on the U.S. system, we will encourage Indonesian students to look into the possibility of studying in the Philippines as a viable alternative.