Italian ambassador hopes to give new shape to RI-Italy ties

The Jakarta Post , Jakarta | Fri, 08/31/2007 1:58 PM

Veeramalla Anjaiah, The Jakarta Post, Jakarta

Italian Ambassador to Indonesia Roberto Palmieri is an action-oriented man who wants to reshape decades-old bilateral ties between Indonesia and Italy.

The ambassador, who submitted his credentials to President Susilo Bambang Yudhoyono on April 19, 2007, also said he is looking forward to presenting a fresh and updated image of Indonesia to his fellow countrymen during a recent interview with The Jakarta Post.

""Ten years after the Asian (economic) crisis, Indonesia is clearly looking forward to catching up with pre-crisis growth levels,"" Palmieri said.

""We have good relations with Indonesia but we could do more in economic promotion. This is clearly visible in our bilateral trade, which registers a structural deficit.""

In 2006, Indonesia exported US$1.21 billion worth of goods to Italy. Indonesia's imports from Italy only amounted to $551.37 million the same year.

""Nevertheless, the bilateral trade trend in the first quarter of 2007 shows a promising pace, with Indonesian exports to Italy growing at 22 percent ($345.32 million)... and Italian exports to Indonesia at 24 percent ($132.21 million),"" Palmieri said.

Italy predominately exports industrial equipment to Indonesia, while Indonesia mainly exports coal, vegetable fats, pulp, paper, rubber, footwear, textiles and furniture products to Italy.

Palmieri said the Italian business community in Indonesia still has room to grow, despite its geographical distance and complex morphology.

""We should do something to draw the attention of Italian companies to the biggest Southeast Asian market,"" the ambassador said.

Currently, Italy is Indonesia's fifth largest trading partner among EU countries after Germany, the Netherlands, Spain and Britain.

Palmieri, who joined the Italian foreign service in 1971, praised Indonesia's new investment law, but said the country's weak regulations concerning international property rights needed attention.

""Italian and internationally well-known brands Prada and Group Mastrotto currently have legal actions in place to restore their trademark rights. Such occurrences do not encourage other investors,"" he said.

Despite these challenges, renowned Italian companies have invested significantly in Indonesia recently, including ENI (energy), Perfetti Van Melle (confectionery), Prysmian Cables, SACMI (manufacturing machines), Nuovo Pignone/GE Group (power generation) and OCRIM (milling).

""In terms of direct investment (in Indonesia), Italy ranks 22nd with $22 million as at the end of 2006,"" Palmieri said.

""But we are confident there is potential for significant growth over the medium term. Some Italian companies have been performing scouting activities during these last (few) months and this may turn into real business soon.

""Clean and sustainable energy is a field of mutual interest. Meeting this criteria, the Italian company Ponte di Archimede has undertaken a project for the development of turbines powered by sea currents,"" he said.

This new technology, Palmieri said, has already been successfully tested in Indonesia, with joint research efforts co-funded by UNIDO.

""In my opinion, we can't increase our presence (in Indonesia) unless there is an even stronger relationship based on political will and high-level visits from both sides. Once this is done, the rest, like trade, will follow"", Palmieri said.

As a concrete step toward achieving this goal, this September the Mayor of Milano, Letizia Moratti, will visit Indonesia with Ambassador at Large Claudio Moreno to promote Milano as the host city of the international Expo 2015.

Milano's theme -- Feeding the Planet, Energy for Life -- is pertinent to Indonesian priorities. Furthermore, Jakarta and Milano are both multiethnic, multi-faith societies faced with the same complex challenges as other great urban areas.

Italian Foreign Minister Massimo D'Alema has also recently accepted an invitation from his Indonesian counterpart, Hassan Wirayuda, to visit Indonesia.

""Our foreign minister will visit Indonesia in the near future. We already have a certain political symmetry between both countries, not least in the sense that both are currently non-permanent members of the Security Council,"" Palmieri said.

It is also the political will of both Indonesia and Italy to operate as mediation countries, especially within the framework of multilateral cooperation. Peacekeeping forces in Lebanon are an example of this.

Italy's commitment to its friendship with Indonesia was tangibly turned into a debt-swap agreement valued at approximately US$30 million in 2005.

""It is a landmark agreement in Italy's cooperation with Indonesia, with the aim of poverty alleviation and rural development in Aceh and Nias.

""We would also like to increase our cultural presence in Indonesia,"" Palmieri said.

The 61-year-old ambassador said the Italian government has granted more than 150 scholarships to Indonesian students to study in Italy this year.

He also said his country has been actively promoting Italian language and culture in Indonesia.

When asked about his diplomatic career, Palmieri said he joined the ministry due to an interest in international relations and a belief in the public service.

During his 36-year diplomatic career, Palmieri has worked in China, Japan, France and New Zealand at Italian diplomatic missions. From 1999-2003, he was Italian Ambassador to New Zealand and the Pacific Island States.

He is also the author of several books, including on China, Japan and international relations in general.

Palmieri, who speaks Italian, English, French and some ""survival"" Chinese and Japanese, said he and his wife Adriana have enjoyed their time in Indonesia so far.

""I have worked in China and Japan -- countries generally considered challenging -- but I find Indonesia somehow more multifaceted. Hence (there will be) more work and therefore hopefully more fun,"" he said.

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