AUSTRALIA & INDONESIA CONTINUE TO CEMENT COOPERATION

Jakarta - The meeting between Australian Prime Minister, John Howard, and Indonesian President Susilo Bambang Yudhoyono in Bali on Friday (27/07) provided good momentum to improve the bilateral ties between Indonesia and Australia amid their fluctuating relations in the past few years. 

Howard's visit to the resort island of Bali to talk with President Yudhoyono and inaugurate an Australian Consulate General and open an Australia Bali Memorial Eye Centre (ABMEC) is very significant to the two neighboring countries' interests.

The two leaders' gathering took place in Nusa Dua, Bali, and this is Howard's 13th visit to Indonesia in more than 11 years as Prime Minister.   

In the talks, the two leaders agreed to, among other things, carry out a joint feasibility study on the benefits of a joint Free Trade Area (FTA) as part of their efforts to increase bilateral investment, and economic and trade relations.

"We encourage and welcome the initiative of the Trade Ministers of the two countries to conduct a joint study on the formation of a bilateral Free Trade Area (FTA)," President Yudhoyono said in a joint press conference with Prime Minister Howard.

The feasibility study was expected to be started in August 2007 and scheduled for completion in mid-2008.

A press statement on the results of the two leaders' meeting on Friday (27/07) morning said, the feasibility study would evaluate the prospects of efforts to further develop the progress that had been achieved in Australia-ASEAN-New Zealand FTA negotiations. The feasibility study would also focus on the FTA's benefits and cost for Australia and Indonesia in accordance with the World Trade Organization's provisions by taking into account wider trade, foreign policies, strategic implications and the value of an agreement on the settlement of bilateral trade problems.

Based on the results of the feasibility study, various recommendations would be issued which would maximize profits and minimize the cost of an FTA. It was said that Indonesian-Australian trade reached US$10.4 billion in 2006.

Australia's exports to Indonesia increased by 22.6 percent to 44.4 billion Australian dollars. Australia's main exports included wheat flour, crude oil, aluminium, livestock and cotton.

In the meantime, Indonesia's exports to Australia increased by 24.2 percent to 4.5 billion Australian dollars. They consisted of crude oil, gold, paper, cardboard and processed timber.

On the occasion, John Howard welcomed the agreement to conduct an FTA joint feasibility study, which according to him, would further cement the two countries' cooperation in the economic field.

Indonesia is a very important partner to Australia, especially in view of our close proximity, strong political, security and economic ties and extensive people-to-people relationship, a statement issued by the Australian Embassy on July 26 quoted Howard as saying.

The new Consulate General was built at a cost of A$7.15 million (IDR 55 billion) following the closure of the previous office for security reasons after the September 2004 bombing of the Australian Embassy in Jakarta.

Memorial Eye Center

In his opening address, John Howard said the Australia Bali Memorial Eye Centre was part of the Bali memorial assistance measures he announced in 2003 to provide quality eye care for Indonesians affected by blindness.

The hospital was built in remembrance of Australian nationals who were killed in the terrorist bomb attacks in Bali in October 2002 which claimed 202 lives, mostly Australian holiday-makers.

"This eye center is not only for Australians but also for Balinese and other foreigners who fell victim to terrorist bomb attacks," Howard said.

The premier noted that Australian contribution proved that the two countries were very important partners because of their close proximity, strong political, security and economic ties and extensive people-to-people links.

Howard also reviewed with President Yudhoyono the full range of their existing cooperative activities, including those in important areas such as security, counter-terrorism and transnational crime.   

Meanwhile, President Yudhoyono said the opening of the ABMEC was part of the two countries' cooperation in love, friendship and humanitarian affairs.

"The inauguration of the ABMEC provided good momentum for a stronger friendship between Indonesia and Australia," Yudhoyono said, adding that the construction of the hospital was started in 2004 and funded by the Australian Government.

"The eye center is not only for Australians but also for Balinese and other foreigners who became victims in terrorist bomb attacks," Howard said.

Based on data from the World Health Organization (WHO), about 55,000 people in Indonesia have lost their sight, two-thirds of whom suffered from cataracts.

Most of the eye sufferers came from poor families and could not afford medication to regain normal sight. With the presence of the eye center, it was hoped that the number of cataract patients would by 2010 increase from the present 3,000  to 6,000 patients each year.

The eye center, which was built on 2,470 square meters of land, has facilities such as building and medical equipment.

Lombok Treaty

Yudhoyono also hoped that the House of Representatives (DPR) will ratify the  defense cooperation accord between Indonesia and Australia soon.

"We have already submitted the Defense Cooperation Accord or the Lombok Treaty to the DPR for ratification. Hopefully, everything will go smoothly and the accord can be implemented in full," President Yudhoyono said in a joint press conference with the visiting Australian Premier.

The President said the accord signed in the eastern Indonesian island of Lombok on November 13 last year was an important cooperation agreement for the two nations because it covered cooperation in the fields of defense, law enforcement, counter-terrorism, maritime affairs, and natural disaster mitigation.

Under the accord, the two nations also had agreed to uphold bilateral principles, including mutual respect for each other's sovereignty without interfering in each other's internal affairs and mutual respect for each other's national unity, territorial integrity and independence in the political field, he said.

"So, the aim of the Lombok Treaty is to benefit both Indonesia and Australia," he said.

In addition to the Lombok Treaty and trade and investment relations, the two leaders also discussed programs on the handling of climate change to be brought up at the Asia-Pacific Economic Cooperation (APEC) meeting in Sydney in September, Yudhoyono said.

The programs would also be discussed in the United Nations Framework Convention on Climate Change (UNFCCC) conference scheduled for December 3-14 in Bali, he said.

The two-week conference in Bali would bring together representatives from more than 180 countries as well as observers from inter-governmental and non-governmental organizations, and the media.

Other Australian assistance such as scholarships for many Indonesian students has also strengthened the bilateral relations (Antara, 28/07/07)