RI biggest beneficiary of UK’s greater focus on Asia

The United Kingdom recently appointed Mark Canning as its ambassador to Indonesia. The Jakarta Post’s Abdul Khalik talked last week with the new ambassador about his priority agenda and the UK’s policy on Indonesia. Below is the excerpt of the interview:

Question: Do you have a specific priority during your assignment here?

Answer: Very much so. I have come with one mission and one mission only, which is to develop the relationship between Britain and Indonesia. The relationship now is good. We’re cooperating in a range of areas. We’re a major investor in this country. We’re cooperating in the fight against extremism, climate change. We are also collaborating in the international arena, within the G20. But the UK and Indonesia agree that there is scope to do more. So, my objective here is to do just that, to take the relationship to another level.

And the British diplomatic network at the moment is going through a very important transition. We’re moving resources out of Europe. We’re shifting them to the east, to the countries that we really think are going to take off in the coming years. And the two biggest beneficiaries for that network shift are Indonesia and China.

So, it’s a very exciting time to be here because in the next few months we’re going to see the embassy increase in size. We’re going to see the building of the new embassy to be completed by 2013. You’re going to see an increase in the volume of senior-level visits to this country. Across the board, you’re going to see more activities, whether it is in the area of business, investment, climate change and other areas so that we can really take this relationship to the next level.

Why Indonesia?

We see Indonesia as being important in a whole range of ways. Important as an economy, you are a regional giant and a global player. We think Indonesia is going to be a major player in a number of political areas, through your leadership within ASEAN, through your role within the G20, through your role as a major economy, which the World Bank predicts will one of the sixth largest economies by 2025. So for all of these reasons, this is a country which matters very much to the UK.

And we believe that for the benefit of both sides, not just for the benefit of the UK, there is a lot to be gained by working even more closely together. The UK will be a major market for Indonesian products and investment. If we’re going to make real progress on the economic difficulties facing the world, we need to do it with countries like Indonesia. If we’re going to make progress on combating CO2 emissions, we must do it in partnership with countries like Indonesia. There are a whole range of reasons why we believe it’s important to work with this country. And you will see in the coming months that start to come into effect.

Does the crisis in Europe effect the UK’s attention to Indonesia?

Well, it’s no secret that the world economy faces a number of challenges. The US economy, the euro- zone, and all of us will be affected. So, there is no escaping the fact that we face pressure on resources along with everyone else.

But we believe that what we have seen happening in the world economy now is the argument for doing what we are doing. We see a shift in the economic wave moving from the West to the East. And that is why we’re moving our resources in that direction.

So, if you like, the economic problems that face the global economy now are more of the reason to do what we are doing.

Can you explain what areas of cooperation have become the focus?

There are several areas. In the area of climate change, for example, I prefer to call it sustainability because that’s what is about. It’s about ensuring the basis of the economy is established on a sustainable footing. We believe that working to help Indonesia realize its ambitions in this area is very important. Last week, one of our ministers and also the Norwegian minister of environment were here for a forest conference. That was a signal of the fact that nothing is really going to be resolved on this international subject without leadership from Indonesia. We are very pleased to see the ambitious target you set, and we are committed to help you realize them in a way that does not jeopardize your ambition to make this economy grow at 6 percent plus. We do not believe this is a zero sum game. It is possible —and Brazil has shown it — to have an ambitious target for economic growth, but at the same time to do it in a sustainable way.

The UK also has a lot to offer in the education sector. We have a very big scholarship program. There was a very influential survey about three weeks ago, ranking the top universities in the world.

The UK has five universities in the top 20, and Cambridge University is the number one. Now, the number of students coming from Indonesia to UK universities has increased quite rapidly, but it is still quite small in number. We believe that there is scope to increase this flow of students, and to really develop this area of cooperation.

Then there is cooperation to increase the level of trade and investment. On the first of November, we will have the first round of UK-Indonesia trade talks to look at how we can work around some of the obstacles to investment.

You mentioned barriers or obstacles. Can you give an example?

They all to a greater or lesser extend center on the need for clear and transparent laws. That is what investors want now, particularly when you talk about areas like energy. You need transparency and predictability. You know, the investment environment here is good. Don’t get me wrong. But there are some areas to improve to make Indonesia a better place to invest.