Trade and industry, the backbone of Sweden-Indonesia relations

Trade and industry, the backbone of Sweden-Indonesia relations

Swedish Ambassador to Indonesia H.E. Harald Sandberg shared
his view on the bilateral relations between the two countries
during his term here.

Question: You have been the Swedish ambassador to Indonesia
for three years. What are your thoughts and what is your message
today?

Sandberg: When I look back at my three years in Indonesia, I
see times of difficulties and hardship for the Indonesian people.
Obviously, anyone who has fallen in love with this country is
concerned today. These three years have also seen profound
political changes, however, with a new openness, free elections
and governance with a democratic mandate. These changes have led
to a positive increasing interest for Indonesia in my country. I
look forward to see further positive changes and developments.
Indonesia's enormous potential in all fields is better understood
than ever. I also see an increasing interest for Sweden in
Indonesia, and travel between Sweden and Indonesia is increasing.

Sweden and Indonesia have a long tradition of good diplomatic
relations. What do the relations between our two countries mean
to you as ambassador?

For me, relations between countries primarily mean people-to
people relations. The backbone of our relations has always been
in trade and industrial contacts.

Everyone recognizes an Ericsson cellular phone, but how many
know that the telephone system they are talking through builds on
Ericsson equipment? Tetra Pak fruit juice containers are used all
over Indonesia. Indonesian women will associate quality cosmetics
with Oriflame, sold all over Indonesia, and millions of
Indonesian motorcycles run on SKF ball bearings. The yellow
Swedish Match matchboxes are recognized by millions of
Indonesians, as are Lux and Electrolux home appliances. Hundreds
of thousands of Swedes have Indonesian products from the
furniture chain IKEA in their homes or wear Hennes & Mauritz
Indonesian made clothes. Millions of Indonesian meals are served
on Perstorp's Indonesian made first-class dinnerware, and who
wouldn't like to have his valuables in a Chubb safe? Anyone in
mining will think of reliability and high tech when hearing Atlas
Copco mentioned, and did you know that milk and cream are
separated with Alfa-Laval equipment? Swedish consumers are
enjoying excellent Indonesian pineapple and Indonesian drivers
feel safe in Volvo and Scania cars, trucks and buses. Indonesians
are listening to Swedish music artists like Roxette, Meja,
Cardigans, Eagle-Eye Cherry and A-Teens.

I could talk also on cultural exchange, or on the thousands
of people traveling between our two countries each year, but
these examples from the business world are also examples of
people-to-people relations!

How do you see relations developing?

Let me give an example. With globalization and the IT
revolution, the distance between our countries is shrinking
dramatically. With instant information we have become neighbors.
Swedish industrial buyers like Ericsson, the global technology
group ABB, pharmaceutical giants Astrazeneca and Pharmacia, steel
companies like Assab and welding specialists Avestapolarit and
ESAB have encouraged the development of a wide range of IT
solutions and fostered the creation of a number of Swedish IT
companies. In Indonesia we see the activities of IFS, a business
applications supplier, and Scala, the Internet business group.
And if you want to know what Jakarta-based Atlantis Software is
doing, take a look at www.ciptasoft.com.

There is great scope for further and broader relations between
our countries. We need to use our new "neighbor relationship",
learn to know more about each other and see how we can build
"win-win" relationships.

A year ago you were asked whether Swedish companies are coming
to Indonesia to invest in the aftermath of the crisis. You saw a
positive trend back then. What are your impressions now?

We are seeing a further normalization in trade and commercial
contacts, which will be beneficial for both parties. For me, this
is what globalization is all about, a mutual exchange of goods
and services, and with these contacts, come an increased
interaction of people. In addition, it is not only the companies
that will benefit from the increasing contacts, but also the
consumers.

At the moment there are about 50 Swedish companies with their
own representation here in Indonesia, and many, many others who
are represented through agents. Swedish related companies employ
over 10,000 people here in Indonesia. I think there is a clear
potential for an increase in the number of Swedish companies
operating here.

However, there are still challenges that have to be overcome.
Continued financial sector reform is central, and an equitable
solution to the issues of private sector debt is crucial for the
credibility and recovery of the Indonesian economy. Other
challenges lie within the social and environmental areas, i.e. in
sustainable forestry and preservation of Indonesia's heritage in
its tropical forests. Yet another challenge lies within the
decentralization process.

Last but not least, the legal system must gain credibility.
Business is risk, and the last thing businesspeople want are
governments adding risk, which cannot be measured. The government
has made it a priority to eradicate corruption, collusion and
nepotism. Rules and regulations, be they in taxation, in customs
or in other areas, should be transparent and the implementation
must be predictable and equally applied to all parties.

If these challenges can be overcome, I am sure there are great
potential for an even further expansion of business between our
countries. And increased business will serve as a catalyst for
further and broader relations in politics, in culture and in
other areas.