India-Indonesia Relations - Challenges and Opportunities
17 May, 2007 · 2294
Interview with His Excellency, Mr. Rizali W. Indrakesuma, Minister Counselor, Charge d'Affaires, Embassy of Indonesia, New Delhi, 1 May 2007
Interview with His Excellency, Mr. Rizali W. Indrakesuma, Minister Counselor,
Charge d'Affaires, Embassy of Indonesia, New Delhi, 1 May 2007 How do you
view India and Indonesia relations today - as a reliable friend or a strategic
partner?
The
India-Indonesia relationship dates back to hundreds of years and continued after
the independence of both countries. This was especially evident when our
founding leaders, Sukarno and Nehru who shared the same values of independence,
freedom and non-alignment, later translated those ideals into the first
Afro-Asian Conference at Bandung. During the past sixty years, the bilateral
relations between our two countries have not faced any major challenge. Any
difference of opinion remained at the level of normalcy and was resolved
amicably. Nevertheless, the bilateral relations have remained lukewarm. This
should not be the case given the similarities and closeness that we share.
First,
there has been general ignorance among the Indian people about Indonesia, and
vice versa. Second, both the countries have yet to see the urgency of
intensifying the economic, scientific and technological, and social and cultural
cooperation. Two of the most populous countries of the world should have much
more in the relationship. Perhaps, when our two governments professed to the
idea of strategic partnership in a Joint Declaration signed by the Indian Prime
Minister Dr. Manmohan Singh and the Indonesian President Dr. Susilo Bambang
Yudhoyono during the latter's visit to India in November 2005, these concerns
were among the considerations of the two leaders.
Yes,
the target is very much possible to be achieved. We need to reinvigorate many
areas of cooperation especially trade. Energy - including both coal and natural
gas - can be a promising area for enhancing trade relations, since India needs
energy and Indonesia has the resources. Following what has already been done by
Indian investors in Indonesia, Indonesian investment in India should also be
promoted.
In
general, both India and Indonesian investors should be made more aware of
potential areas of investment. If Indonesian businessmen can invest in China and
European countries, they can also invest in India.
As
for Indian investment in Indonesia, there is now a trend for Indian investors to
utilize India's soft loan offers for investments in Indonesia. This scheme,
however, might take some time to be acceptable to Indonesia due to the nature of
such loans, which are currently not viable options for the Indonesian government
in the implementation of foreign direct investment in Indonesia, as opposed to
the more favored grants.
Indonesia
can provide natural gas from Aceh, and copper and nickel from Irian Jaya to
India.
Indonesia
has committed itself to the ASEAN process. There are also bilateral concerns
which need to be addressed. In terms of bilateral trade relations, there are
various other matters, some of which need to be prioritized. Both the processes
do not coincide or contradict one another. There would be a time when both the
countries would be able to make adjustments to make sure that both the processes
go smoothly.
As
happens in other negotiations, the time will come when the parties will take
stock of the negotiation process in terms of what has been achieved. Let the
leaders decide and adjust to the coming situation. If there are good reasons for
extension of the time limit, then the time limit can be extended. This has been
the case in the past. We are all aware of the hundreds of issues which all the
parties need to decide but the time is limited. The more important matter is the
willingness of all parties concerned to spare no efforts in finding convergence
of ideas on the various issues.
It
is possible and logical for India and Indonesia to take such initiatives. As a
matter of fact, ASEAN has always been appealing to the Myanmarese government to
improve the human rights situations domestically. Myanmar has for long been
ruled by a military junta. If that is the way the country is to be run and
governed, we do have to respect that. ASEAN has already implemented the policy
of constructive engagement with Myanmar and state sovereignty needs to be
respected. However, human rights issues are in urgent need of being addressed.
There
is a greater need to have a balanced perspective on the entire issue of
democratization in Myanmar. People in the West do not care since they are
distant. Both India and Indonesia are very close to Myanmar and if anything
happens, the impact can affect us directly compared to other countries which are
more distant and not in proximity. Therefore, there is a need for caution and
balance.
Both
countries are aware of the problems and the militaries of the two countries are
working together through various exchange programmes such as joint naval patrol.
Both India and Indonesia have been victims of the terrorism in the past. These
matters are being discussed not only in the bilateral forums but also in other
regional forums.
Indonesia
has given visa on arrival facility to Indian citizens from last year. India has
reciprocated in the sense that Indonesian officials do not need to get visa to
come to India for a certain timeframe. But India has yet to give the 'visa on
arrival' facility to common Indonesian citizens.
The
matter of Garuda is one that we have been seriously looking into for years so
that the Garuda resumes its flight from Jakarta to Mumbai which first started in
the 1960s and had to be terminated in 1998 after Indonesia was hit by the
economic crisis. It has considerably reduced the inflow of Indian tourists to
Indonesia. Compared to Singapore and Thailand, the number of Indian tourists
coming to Indonesia is very low despite the world famous Bali as a tourist
destination.
Two
months ago the embassy was really pleased to know that the Garuda is going to
close down some of its current destinations and resume older ones, one of which
is India.
I
would like to pinpoint tourism as one of the most important sectors where
cooperation should be enhanced. The numbers have really been not too encouraging
since Indonesia is a larger country than Thailand and Singapore which attract
more Indian tourists.
Education
can be another important area for cooperation. Indian education is a low-cost
and high-standard affair. There are more South Korean and Thai students in India
than Indonesians. We have been 'wasting our time' by being complacent with our
relations since there has not been any problem in our relations.
One
of the areas that need to be preserved and enhanced is of non-alignment as a
force in the matters of development to minimize the gap between the rich nations
and poor nations. There are other issues such as issues of terrorism, issues of
UN restructuring but these should not overtake our efforts to make a better
world for developing countries through non-alignment.
In 2005-06 the total
bilateral trade stood at US$5 billion. The bilateral trade target has been fixed
at US$10 billion by 2010. Do you think it is possible to achieve the target?
What could be the reasons
for limited Indonesian investment in India?
Indian regulations on investment have yet to become more appealing to Indonesian
companies so as to increase their interest and, later, their presence in India.
What are the possible
sources for energy supplies to India in Indonesia?
Does Indonesia prefer
ASEAN-India FTA or the bilateral India-Indonesia FTA? Both are in the process of
negotiations. Which way would Indonesia choose to go?
The deadline set for
ASEAN-India FTA is July 2007. Do you think that both the sides will be able to
get the deal going in the coming four months?
During the last one year,
the issue of Myanmar has become urgent given the fact that the matter is being
deliberated in the UN Security Council. Is it possible for both India and
Indonesia to come together and not just persuade Myanmar to go easy on human
rights situations but at the same time create a situation in which the
international community especially the western world does not impose its will on
Myanmar and push Myanmar to the corner?
Both India and Indonesia
suffer from similar non-traditional security challenges such as terrorism and
piracy. What steps have India and Indonesia taken together to address these
problems?
There is no direct air
service by the Gardua airlines and Air India flies only once in a week. The visa
regime has also been tough, causing problems for Indian traders and businessmen.
What steps have the two countries taken to improve the connectivity between the
two countries?
If you have to identify
three new areas where India and Indonesia should cooperate, what areas would you
suggest?
On what two important
issues would you like both India and Indonesia to work together in international
politics?