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Furthering Indonesia-Sweden good relations
With Indonesia and Sweden celebrating 70 years of diplomatic relations next year, they are enjoying steady and growing relations as well as sharing a common vision for a peaceful and prosperous world
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span>With Indonesia and Sweden celebrating 70 years of diplomatic relations next year, they are enjoying steady and growing relations as well as sharing a common vision for a peaceful and prosperous world.
The two countries have similarities in their respective foreign policy, contributing toward United Nations peacekeeping operations and just and lasting peace between Palestinians and Israelis based on a two-state solution.
In the years to come, the two countries are looking to deepen their cooperation on the foundation of a shared belief in democracy, respect for human rights, gender equality and promotion of world peace.
Both countries have increasingly played a prominent role on the global stage. Working against a backdrop of sharp polarization, breaches of international norms and weakening support for multilateralism, Indonesia and Sweden are actively working together for world peace.
The Swedish king and queen’s state visit to Indonesia in 2017 presented a huge opportunity and had positive effects for the business sector. During the visit, the king, ministers and 35 Swedish business leaders took part in the Indonesia-Sweden Executive Forum, in which they discussed digitization, infrastructure and opportunity for doing business.
For the future, the two countries are looking to strengthen their economic ties in the fields of investment, energy, environment, transportation and creative economy.
The state visit also saw the signing of three agreements in several areas, creative industries and transportation, including air navigation and airports. Several other agreements were also signed separately, namely cooperation in the fields of innovation, entrepreneurship and science parks and education.
Sweden is one of the most advanced countries in Europe for start-ups. The city of Stockholm, for example, is a city of unicorns. Sweden is one of the most innovative countries worldwide with a well-established “triple helix” approach.
As the largest ASEAN country, rich in with natural resources, increasing working age population and middle class, private consumption of about 60 percent of gross domestic product (GDP), there is no denying that at present Indonesia is a very promising destination for Swedish business and investment.
Based on the 2019 competitiveness rating released by the International Institute for Management Development’s World Competitiveness Center, Indonesia’s competitiveness ranking rose from 43 to 32 this year, due to efficiency in the government sector, progress made in infrastructure and the good business climate.
The increase is the highest in the Asia Pacific region.
In 2015-2019, infrastructure development became a priority program of President Joko “Jokowi” Widodo to improve economic growth and even distribution of development outcomes. The impact of the completion of a number of infrastructure projects contributed to the improvement of Indonesia’s competitiveness.
The Business Sweden organization in Indonesia has recently conducted a survey on how Swedish business companies in Indonesia perceive the current business climate, with over 80 percent of the Swedish companies expecting increases in revenues over the next three years, and four out of five companies planning to increase investment in the near future.
The survey showed that 68 percent of Swedish companies have operated for more than 10 years in Indonesia and Swedish companies have a positive outlook for the development of their business, planning to expand their activities and investment.
The Indonesian economy is predicted to become the seventh-largest by 2030, moving from emerging market into economic powerhouse.
That change will increase business opportunities, especially in the creative economy and start-up business, the most dynamic sectors of the Indonesian economy, along with huge potential in the technology sector.
Sweden well-known companies such as H&M, IKEA, Tetra Pak, ABB Group, Ericsson and many others are already established and growing in Indonesia. Their ideas and technology contribute positively to the development of Indonesian infrastructure for the creative economy and start-ups.
After the April 17 elections, the official count showed that President Jokowi won the race by 11 percent. By far, the Indonesian currency and share market have weathered the election campaigns, extending modest gains so far this year. This was applauded by investors and businessmen.
There is no doubt that Indonesia’s processes and institutions that adjudicate election challenges are seen as tested, well institutionalized and expected to rule fairly on any challenge that is brought before them.
Looking back at all the developments in bilateral ties, we can surely see great potential for advancing the relationship into the future.
Cooperation in an environmentally sustainable economy is one of the priorities on the table. Continued dialogue with the research community to identify pathways for sustainable development of the agro-industry in Indonesia plays a major role in this issue.
Swedish experiences and scientific-based expertise in bioenergy can provide valuable support and insight to Indonesia.
Sustainable bioenergy and palm oil studies are being conducted at the Royal Institute of Technology to enhance and utilize biomass potential in Indonesia. The Swedish Institute has expressed interest in seeing the management of sustainable oil palm plantations in Kalimantan and Sumatra.
Sharing knowledge and lessons in forest preservation and sustainable tourism would be a very interesting path forward for bilateral ties and should be intensified and carried out more quickly.
Finally, all these developments mean the future is bright for Indonesia-Sweden relations.
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The writer is Indonesian Ambassador to Sweden.
