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Indonesia-Sweden diplomatic relations turn 70 and counting
According to the Global Innovation Index (GII) released in September, Sweden has overtaken the United States in the area of innovation.
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espite the 11,000-kilometer distance, Indonesia and Sweden are bonded by many mutual interests. If one were to describe the two countries’ similarities, the most fitting words would be "active engagement" and "firm" in implementing foreign policies.
It can be said that in every international peace initiative, there is influence and wisdom from both countries, especially with Indonesia (2019-2020) and Sweden (2017-2018) being active as non-permanent members of the United Nations Security Council.
The roles of these two countries are increasingly prominent, including in deploying UN peacekeepers, supporting the independence of the Palestinian state, discussing gender issues, the role of women and development. Against the backdrop of the increasingly sharp polarization of powerful nations and their tendency to objectively oppose international norms and law, Indonesia and Sweden are increasingly active in engaging and taking concrete actions for world peace.
In short, security, peace and economic cooperation are not mere slogans but demands to be met for our current affairs. How will this affect the bilateral relations? The data below may be of help.
There has been a rapid increase in Swedish foreign capital flows to Indonesia within the last four years (2016-2020), from US$4.4 million in 2016 to $26.3 million in 2019, or an increase of more than 500 percent, according to the Investment Coordinating Board’s (BKPM) April data.
Swedish Energy Minister Anders Ygeman addresses the launch of the report "Make Way for Indonesia: How to Capture the Potential of Asia's Next Regional Giant" on March 3 in Stockholm. Responding to Sweden's view, Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan responded and invited all Swedish businessmen to come and invest in Indonesia.
The business report released by Business Sweden 2020 contains statistical data on the current state of the Indonesian economy and future prospects, in addition to noting potential sectors for investment for Swedish companies. Some of these sectors cover urban development, including infrastructure and construction, transportation, health technology, manufacturing and e-commerce.
Sweden places an interest in the use of Indonesia’s palm oil for sustainable development initiatives. In line with the 2030 Sustainable Development Goals (SDGs), the Swedish government funded research conducted by the Royal Institute of Technology on the development of renewable energy. Indonesian bioenergy expert Fumi Harahap has been entrusted to carry out a study on the use of bioenergy for development at the Royal Institute of Technology in Stockholm.
On Sept. 30, House of Representatives Commission I ratified a memorandum of understanding on Indonesian-Swedish Defense Cooperation. This defense agreement provides an opportunity for technology transfer. In addition, Sweden promises opportunities for job creation in Indonesia.
The job creation program is part of cooperation between Sweden and Indonesia aimed at strengthening collaborations in science and technology, as well as innovation. The goal is to improve the national innovation ecosystem in Indonesia.
Indonesia and Sweden commemorates the 70th anniversary of their diplomatic relations this year. On Sept. 23-27, the two countries held a high-level dialogue and discussion on issues of mutual interest, including the SDGs, triple helix, transportation, energy, infrastructure, waste management and health.
The aforementioned issues are relevant to the working Cabinet program of President Joko “Jokowi” Widodo and Vice President Ma'ruf Amin. Energy, health and infrastructure development, including transportation, are among the priority programs to increase economic growth and equitable development results.
As the largest ASEAN nation, Indonesia with its abundance of natural resources and increasing human capital will contribute to the expansion of the middle class. The developing number of people in the workforce will drive domestic consumption growth. There is no denying that today, Indonesia is a promising destination for Swedish business and investment.
According to the Global Innovation Index (GII) released in September, Sweden has overtaken the United States in the area of innovation. Switzerland ranks first in the world, followed by Sweden, which scored 62.47/100. The US has dropped to third place with a score of 60.56/100.
Innovation is a prerequisite for a country's progress. Innovation may come from an idea or concept that has "matured" and should emerge when a problem occurs. In the past, basic necessities mainly revolved around food, clothing and housing. Today, it has become more complex and varied; for example, the need for education, communication, networking, etc.
Creativity and innovation are needed to create products and services that can answer the people's needs in any circumstance, such as the current COVID-19 pandemic. The question is, if Sweden has been doing business with Indonesia for 100 years (Ericsson was already present in the archipelago in 1907), then what should we be waiting for? Especially when the benefit to the future generation’s sustainability is concerned?
According to the Business Climate Survey for Swedish companies in Indonesia in 2020, consistent growth has sustained profitability for Swedish companies in Indonesia, with 63 percent of respondents reporting positive results from local operations in 2019.
I certainly hope that the opportunity to promote cooperation is — and will remain — wide open. Wishing Indonesia and Sweden all the best –– congratulations!
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The writer is former Indonesian ambassador to Sweden and Latvia (2016-2020). The views expressed are his own.
