Italy and its close friend Indonesia have been intensifying efforts to upgrade their strategic relations through high-level visits and enhanced economic cooperation, a top Italian envoy has said.

“The intensified dialogue has broadened the scope of our cooperation to further fields, laying the foundations for an enhanced cross-sectorial partnership,” Italian Ambassador to Indonesia Vittorio Sandalli said during the colorful Italian National Day celebration at Shangri-La Hotel in Jakarta recently.

In May 2017, Italian Minister of Economic Development Carlo Calenda visited Indonesia along with a 50-member business delegation to revamp economic relations between the two countries. In February, Italian Foreign Affairs and International Cooperation Minister Angelino Alfano came to Jakarta to upgrade Italian ties with Indonesia.

Foreign Minister Retno LP Marsudi and Energy and Mineral Resources Minister Ignasius Jonan visited Italy recently for the same purpose.

Ties between Italy and Indonesia have grown by leaps and bounds since 1949, when both officially established their diplomatic relations.

Trade between the two countries has been on a positive trajectory for many years. For example, Indonesia’s trade with Italy has surged to US$3.50 billion in 2017, a huge jump from $2.95 billion in 2016. Indonesia’s exports, mainly coal, rubber, garments, palm oil and paper, among others, jumped to $1,93 billion last year, a significant increase from $1.57 billion in 2016.

Likewise, Indonesia’s imports, mainly machinery, vehicles, shoes, garments, fashion accessories, also increased year-on-year (yoy) to $1.57 billion in 2017, up from $1.38 billion in 2016.

According the Investment Coordinating Agency (BKPM), Italy’s foreign direct investments in Indonesia stood at $64.9 million in 2017.

“We need to facilitate joint ventures between our economic players in order to consolidate the present [rising] trend. To this end, we look forward to working together with Indonesia to increase the flow of mutual investments,” Ambassador Sandalli said.

Echoing a similar view, Manpower Minister Hanif Dhakiri, who was the chief guest at the reception, said that both countries have a huge potential in economic cooperation.

Women power: Italian Cultural Center director Michela Magri (second left, front row) poses with guests during the Italian National Day reception at the Shangri-La Hotel in Jakarta on May 8. (JP/Veeramalla Anjaiah)

“The present trade does not reflect the real potential of both countries. We can do much better in the future,” Hanif said.

In order to foster bilateral trade and investment, there is an urgent need for the speedy adoption of the Comprehensive Economic Partnership Agreement (CEPA) between Indonesia and the European Union. This CEPA will provide enormous opportunities for business people in Italy and Indonesia, and lower both tariff and non-tariff barriers.

“Once agreed, the CEPA would unleash the full potential offered by the complementarity of our economic systems, and would also send a clear message of our shared commitment toward open markets and a rules-based international trade system, against all forms of protectionism,” Sandalli said.

On the political side, both countries are members of the G20 and share the same values, like democracy, peace, justice, rule of law, tolerance and human rights. Both countries have been working closely at various international forums.

According to Sandalli, people-to-people contact has also been on the rise in recent years.

“Every year, 100,000 tourists visit our respective countries, thus building mutual knowledge,” Sandalli said.

Indonesian students have been showing an increasing interest in either studying in Italy’s top universities or learning the Italian language at educational institutions in Indonesia.

“Italian is now taught in several Indonesian universities, and Italian researchers and academics are active across the archipelago sharing their knowledge and developing joint initiatives,” Sandalli said.

Indonesia will be participating in the Venice Biennale Architecture in Italy this year.

Many Indonesian guests, including several ministers and senior officials, enjoyed the reception, which presented Italian cheese, wines and several mouthwatering dishes. There was also an exhibition on Gioacchino Rossini to mark his 150th birthday. Rossini is considered the most talented Italian Opera composers of all time.

At the reception venue, the Italian Embassy and its Italian Cultural Center showcased a range of creative products, from luxury cars to sophisticated motorcycles.  Next year, the National Day celebration will be even more colorful as both countries will celebrate 70 years of close ties.

Viva Italia: Italian Ambassador to Indonesia Vittorio Sandalli (second left) poses with Law and Human Rights Minister Yasonna Laoly (left) , Manpower Minister Hanif Dhakiri (second right) and Deputy Foreign Minister AM Fachir during the celebration of Italian National Day at the Shangri-La Hotel in Jakarta on May 8. (Courtesy of Embassy of Italy)