Brazil, RI diplomatic ties gaining new momentum: Envoy

Veeramalla Anjaiah ,  The Jakarta Post ,  Jakarta   |  Mon, 09/08/2008 11:00 AM  |  World

South America's rising regional power, Brazil, is looking increasingly to Indonesia as a strategic partner as it makes inroads into the world's most dynamic region of Southeast Asia.

While it was exactly 55 years ago that Brazil formally established diplomatic relations with Indonesia, Southeast Asia's economic power house and regional power, these relations have only gained momentum in recent years.

"The bilateral relationship has really gained momentum in the last three or four years. In our 55-year relationship, for a long time it was just a formal relationship," Brazilian Ambassador to Indonesia Edmundo Sussumu Fujita told The Jakarta Post in an exclusive interview at his office last week.

This was mainly because both countries had now recovered from their economic crises, Ambassador Fujita said.

"The economic situation in Brazil was very unstable in 1980s and 1990s. Indonesia had an economic crisis in the 1990s. But today both countries are stable and growing, and the political situation is good," Fujita said.

Moreover, he added, Southeast Asia was not in Brazil's agenda much.

"Though we had relationships with Japan and China, for a long time, Southeast Asia was a little bit on the side. But more recently Brazil became more interested in Southeast Asia, especially countries like Indonesia," Fujita said.

Why Indonesia?

The answer came from Brazil's President Luiz Inacio Lula da Silva when he visited Indonesia for the first time, in July this year.

"I came to Indonesia believing that in spite of cultural and geographical differences, our countries are complimentary to each other and have similar objectives.

"There is a huge space with which we can work together for the benefit of our peoples," President Lula said in Jakarta.

It seems it took more than 50 years for both countries to put their ties on a fast track toward a strategic partnership.

"We have finally rediscovered each other," Fujita said.

As a result, bilateral trade is growing, while people-to-people contacts, exchanges of high level officials and business visits are also on the rise.

"I think now both countries are on the map," Fujita commented.

Bilateral trade jumped to US$1.58 billion in 2007, a huge jump from $641.27 million in 2003. In the first seven months of this year it had already reached $1.27 billion.

Fujita said, "I think, we will see bilateral trade of more than $2 billion this year".

Indonesia mainly exports textiles, rubber, cacao and palm oil to Brazil, while it imports iron ore, soy, cotton, pulp and sugar from there.

Besides Lula's high profile visit, Indonesian Trade Minister Mari Elka Pangestu visited Brazil from July 31 to Aug. 2, to promote trade and investments between the two countries.

Mari and her Brazilian counterpart Miguel Jorge discussed ways and means to establish a strategic partnership. Accompanying Mari also were a huge business delegation.

And Brazil will also send a big business delegation to Jakarta to participate in the Indonesian Trade Expo, to be held Oct. 21 -25, 2008.

But Mari also had a special agenda.

"Minister Mari's visit was more like a preparatory meeting prior to President Susilo Bambang Yudhoyono's visit to Brazil in November," Fujita said.

Linking 55 years of relations between Brazil and Indonesia, and Yudhoyono's visit, Fujita said, it was rare in one year for both countries' presidents to visit each other's countries.

"It's unique. That's really a nice way of commemorating the 55th anniversary of our relations," Fujita said.

Both presidents have a personal friendship.

"President Susilo and President Lula have a very good relationship. I think there is a nice chemistry between the two," Fujita said.

When asked about the possibility of signing agreements to strengthen bilateral ties during Yudhoyono's visit to Brazil, Fujita said both countries would sign agreements on cooperation in areas like science and technology, biofuel and agriculture.

On the investment side, Brazilian company Companhia Vale do Rio Doce (CVRD) has entered the nickel mining industry by acquiring PT Inco Indonesia's parent company, Canada-based Inco, for $17.8 billion in 2006.

On the Indonesian side, paper company Riau Andalan Pulp & Paper has invested $500 million in Brazil in a paper project.

In an effort to develop a permanent platform to discuss bilateral issues, both countries recently agreed to establish the first-ever Joint Commission, whose inaugural meeting would be held either in Jakarta or in Brasilia.

Fujita said Brazil would also host the first meeting between ASEAN and Mercusor, in November, to increase cooperation between the two leading regional organizations.

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