Indonesia-Japan bilateral relations on track, says envoy

Tony Hotland ,  The Jakarta Post ,  Jakarta   |  Tue, 04/08/2008 11:55 AM  |  World

Indonesian Ambassador to Japan Jusuf Anwar has gone on YouTube to showcase Indonesia-Japan relations in a 4:24-long video underscoring the friendship between the two countries.

"I'm the only Indonesian ambassador to Japan so far who's used the Internet to show how much these relations matter. We're going all-out to max opportunities between the two countries, and I believe we're seeing good results out of it," he told The Jakarta Post here after the conclusion of a four-day meeting of Indonesian envoys posted overseas.

This year marks the 50th anniversary of Indonesia-Japan relations and "the signs are showing that Indonesia holds a special place in the heart of the Japanese", said Jusuf, a former finance minister who was appointed an ambassador in 2006.

"The people in Japan are strangely unique compared to those in other countries in relation to Indonesia because you can see how many friends of Indonesia are in Japan.

"It is easy to bump into dance studios or workshops on Indonesian arts in Japan. The Prime Minister (Yasuo Fukuda) is a former head of the Association of Japan-Indonesia Friendship. I'm sure there's a lot of love in him for Indonesia," he said.

There are around 24,000 Indonesians living in Japan, Jusuf said.

Regarding future relations between the two countries, he said the biggest challenge for Indonesia remained courting Japanese investors to begin investing anew in Indonesia.

"A report by the Japan Bank for International Cooperation says Indonesia is number seven on a list of attractive destinations for Japanese investors, after Cambodia and Vietnam. That's unfortunate and it's our job to get them back.

"With our presentations, seminars and exhibitions, I think they are now waiting and seeing. But, again, the key point is how the government creates a conducive business climate," he said.

Former Japanese prime minister Shinzo Abe was in Indonesia last year, signing with President Susilo Bambang Yudhoyono an economic partnership agreement (EPA) that both countries hoped would accelerate trade and investment growth.

Critics said the agreement would benefit only Japan, but the government argued the accord obliged Japan to provide Indonesia with technical assistance to be able to break into the Japanese market.

Japan is one of Indonesia's largest investors.

Between 1967 and 2007, Japan pumped some US$40 billion into Indonesia. It ranked fourth last year in terms of Indonesian foreign direct investment, according to the Investment Coordinating Board (BKPM).

Providing loans is also another aspect of Japan's potential contribution in Indonesia.

Tokyo has provided billions of dollars in loans for many years, a fact Vice President Jusuf Kalla has criticized.

In a visit to Japan in 2006, the Post quoted Kalla as saying that many projects financed by Japan's loans were "nothing but losses after years of repaying the money", and told government officials not to resort to such loans.

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