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.