KEDUTAAN BESAR REPUBLIK INDONESIA
EMBASSY OF THE REPUBLIC OF INDONESIA
8 Darwin Avenue, Yarralumla, Canberra, A.C.T. 2600
AUSTRALIA
Tel. +612 6250 8600, Fax. +612 6273 6017



ADDRESS BY
H.E. MR. T.M. HAMZAH THAYEB
AMBASSADOR OF THE REPUBLIC OF INDONESIA
ON
AUSTRALIA-INDONESIA RELATIONS AND  
THE ASIA-PACIFIC NEIGHBORHOOD 

BEFORE

 THE INDONESIAN STUDY GROUP, AUSTRALIAN NATIONAL UNIVERSITY
CANBERRA, 15 MARCH 2006


Para Indonesianis yang kami hormati,

Friends of Indonesia,

Ladies and Gentlemen,

1.        I want to thank the organizers of this event for inviting me to give this address this afternoon. I thank Dr. Chris Manning and Dr. Ed Aspinall for providing me with this opportunity to speak before the Indonesian Study Group meeting at the Australian National University. I am particularly honored to see so many distinguished participants here today, to listen about a topic that most of you are perhaps already familiar with. Bear in mind that a diplomat’s approach to every problem is with an open mouth. So my promise to you is to be brief on my presentation and I humbly request your kind comments and suggestions in the following discussions.

2.       Looking around the room, I am pleased to see so many familiar faces from different academic departments of the ANU, including students from my own country, coming together at this meeting to share our particular knowledge and to see how we can further enhance the already excellent bilateral relations existing between Indonesia and Australia. I am very humbled to discuss this topic because it encompasses the current vibrant relationship between Indonesia and Australia and how this relationship is shaping the Asia Pacific neighborhood, a region to which we both belong.

3.      My task here comes at a time where cooperation between Indonesia and Australia is flourishing. The foundations have been laid down, manifested in the Joint Declaration on Comprehensive Partnership, and it is now time to contribute to its building block.

4.      Before I proceed, perhaps to understand the role of Indonesia-Australia relations and our Asia-Pacific neighborhood - which is the topic of my presentation - I should first explain about the new Indonesia that I represent. Then, briefly look into Indonesia’s role in the region and in conclusion, touch on the relationship between Indonesia and Australia.

Ladies and Gentlemen,

5.      We must not forget that Indonesia is one of the most pluralistic societies in the world, both geographically and demographically. And as such, viewed from any standard, Indonesia cannot be an easy country to manage. But in spite of the formidable hurdles the reform process has posed on the Government, the new Indonesia of today has gone far beyond the pessimism that confronted it in the aftermath of the 1997 financial crisis and the subsequent political and economic crises.

6.      In the ensuing years, Indonesia embarked upon the process of democratization and has now become the third largest democracy. The first direct presidential election in mid-2004 marked a turning point in Indonesia’s history. President Yudhoyono, elected by the majority of the people, enjoys greater constitutional legitimacy and as such Indonesia now enjoys a stable government. This wave of democratization has also paved the way to amend the national Constitution, thus ensuring that political power is now equally shared among stakeholders. Parliament is now stronger and has now indeed become more assertive. The Government also took necessary measure to create a more independent judiciary, and adopted a more decentralized system of Government  compared to the strong centralized system of the past.

 7.     In line with this democratization process, the Indonesian Defense Force - the Tentara Nasional Indonesia - also reformed itself and fundamental changes have been introduced by the Government. By way of Law No. 3 of 2002 the military (TNI) and the police force have been separated. The TNI is no longer responsible for the security aspect but rather for the defense of the nation, whereas the National Police is now the authority to deal with security.

8.      One can also witness that presently, Indonesians can discuss and debate any issue pertinent to their daily lives and their future without fear of being prosecuted. Not to mention the media which now enjoys the freedom to print whatever they wish, albeit sometimes at the expense of others. This, to me, is the process of learning that we have to undergo and the price that we are willing to pay in order for democracy to mature. 

9.      These achievements have added confidence to Indonesia’s ability to manage its own affairs and in turn, have increased confidence in the economy. In the economic field, a lively atmosphere and an optimistic view has emerged as recent indicators suggest :

 

-     present gross domestic product surpassed the levels the economy enjoyed before the financial crisis amounting to US$280.9 billion (2005 est) as compared to US$215 billion (1997);

-     gross domestic product per capita reached US$1,237 billion (2005 est) as compared to US$1,070 (1997);

-     real gross domestic product growth reached 5.7% (2005 est);

-     inflation rate of 7.2% (2005);

-     unemployment rate of 9.4% (2005 est).

10.      More economic reform is on the table as just early this month, the Coordinating Minister for Economic Affairs Boediono announced a three-pronged approach to get the economy moving faster. The approach would include :

 ·     new laws on investment, tax and labor as a way to improve the investment climate;

·     acceleration of key investment and infrastructure projects, and

·     increased access to financing and reductions in the cost of financing.

Ladies and Gentlemen,          

 11.      Indeed the process of change in Indonesia is so widespread and so substantial that some international scholars on Indonesia call the process “the great transition”. These changes are in line with the Government’s Medium-Term Development Plan (2005-2009) consisting of: firstly, rebuilding and strengthening public institutions, where socio-political development is considered as important as economic development; and secondly, balancing government-society relations to reflect the increasing demands from the community for the consolidation of political and economic reform.

12.      The first point encompasses measures to create a safe and peaceful Indonesia, addressing crime, including transnational crimes, as well as sectarian and regional conflicts; while the second point encompasses measures to consolidate political and legal reforms, rebuild modern institutions and good governance.

13.       Needless to say, Indonesia still faces tremendous and formidable challenges. Much still needs to be done. Media reports of communal tensions, religious radicalism and acts of terrorism in Indonesia are seen as if these are daily occurrences. However, all signs point to a subsiding of these communal tensions and a strengthening of religious moderation and counter-terrorism measures.

 14.      Let me briefly also touch on the issue of national threats that are directed to Indonesia’s national unity. These are internal issues for which we Indonesians have taken sole responsibility. The Indonesian Government is committed to resolving these issues not through force but through a process of sincere dialogue and reconciliation, through the fulfillment of legitimate aspiration.

15.      Aceh is a case in point when we signed the Memorandum of Understanding in August 2005 with GAM. Undoubtedly, without infringing on Indonesia’s sovereignty, I am confident that with the support and assistance of friends in the international community, we will similarly be able to resolve these issues successfully and, more importantly, peacefully.

16.     I am very optimistic about the progress that Indonesia has made so far and the avenue that it has and is undertaking for the betterment of the entire people.

Ladies and Gentlemen, 

17.     I do not intend to dwell too much on Indonesia’s independent and active foreign policy except to say that this was the basis for Indonesia conveningthe Asia-Africa Conference in 1955 which ultimately gave birth to the Non-Aligned Movement (NAM). The more than one hundred member countries of NAM became the largest political movement, which was at the forefront in the struggle for decolonization, development and disarmament. 

18.     Moreover, Indonesia, with its independent and active foreign policy, is also a founder member of the Association of Southeast Asian Nations (ASEAN) which in 1976 signed the Treaty of Amity and Cooperation as a mechanism to resolve conflicts in the region by peaceful means. Based on the principle of cooperation among its members as well as between ASEAN and other countries, ASEAN succeeded in creating a Zone of Peace, Freedom and Neutrality, and an ASEAN Free Trade Area. Furthermore, ASEAN also developed cooperation with China, South Korea and Japan (ASEAN+3) and India. The ASEAN Regional Forum (ARF) is another mechanism in the region to discuss security issues. Most recently, ASEAN’s decision to establish an ASEAN Community out of a community of ASEAN nations was pioneered by Indonesia.

19.      Similarly, Indonesia is participating actively in the APEC and is one of the proponents of having the East Asia Summit become inclusive. Indonesia therefore supported the participation of Australia in this process, firmly believing that Australia should be part of this regional framework; for we are confident that Australia has the capacity and will contribute to regional security and prosperity.

20.     To enhance cooperation among countries in the Southwest Pacific region, Indonesia launched the Southwest Pacific Dialogue (SwPD), and set up the trilateral consultation between Indonesia, Australia and Timor Leste, and has also become a dialogue partner with the Pacific Islands Forum.

21.     It is Indonesia’s view that through these cooperative frameworks is what will ultimately form the networks which would promote stability, peace and prosperity in the Asia-Pacific neighborhood.

Ladies and Gentlemen,

 22.    Let me now turn to the state of the relationship between Indonesia and Australia. Definitely, the relationship between Indonesia and Australia at present is, I believe, is at its highest peak ever. The state visit by President Susilo Bambang Yudhoyono to Australia on 3-5 April 2005 was a very significant event to the extent that it uplifted the already close relationship to a new level.

23.    The determination of our leaders to enhance the already close relationship is clearly reflected in the statement by PM John Howard during the luncheon that the relations between our two countries “…grow closer and deeper.”  This sentiment was also echoed by President Yudhoyono by stating”…the very purpose of my visit to your great country is to affirm our special relations and to make it even stronger…”

 24.    Due to our geographical proximity and from a strategic point of view, there is no other option for us but to cooperate and build closer relations between our two countries. It should be guided by acceptable roadmaps to minimize conflict and misunderstandings emanating from differences, and to capitalize on the shared objectives of providing security and prosperity for the region. For the short to medium term, we can be confident of stable and productive relations due to the excellent rapport between our Heads of Government and the members of their cabinets.

25.     The Joint Declaration on Comprehensive Partnership between Indonesia and Australia, signed by our two leaders on 4 April 2005, reaffirmed the determination to have the relations between our two countries ‘grow closer and deeper’ covering a wide-ranging of cooperative undertakings. 

26.     The Comprehensive Partnership is aimed at strengthening relations in all aspects of life; between governments, peoples and businesses, covering cooperation in the fields of economics and technical assistance, security, and people-to-people interaction. In the security field, transnational crimes, including terrorism, continues to be a priority. Indonesia and Australia will continue to forge close partnerships between our police forces, immigration and customs officials, as well as security and intelligence agencies. 

27.     What is important in the Comprehensive Partnership is the people-to-people links - the lynchpin of our bilateral relationship. President Yudhoyono and Prime Minister Howard expressed their determination to encourage and strengthen the links from both sides. Education was acknowledged as central to people-to-people relations, and they want to see an increased number of Indonesian students studying in Australia. Against this backdrop, we warmly welcome Australia's offer of 600 post-graduate AIPRD (Australian Indonesian Partnership for Reconstruction and Development) scholarships. To contribute to this noble endeavor, President Yudhoyono decided to increase Indonesia's scholarship intake from Australia from three to fifty in a five year period.

28.    The Comprehensive Partnership also encourages the strongest possible links between the Indonesian and Australian Parliaments. Closer interactions between parliamentarians are fundamental to stable long-term relations, which is particularly important during sharp shifts in public opinion. Last year we witnessed our Commission I (Defense, Foreign Relations and Information) of the Indonesian House of Representatives (DPR) and members of the new Regional Representatives Council (DPD) visiting the Australian Parliament. 

Ladies and Gentlemen,

29.    Looking towards the future of Australia - Indonesia relations on a broader perspective, on the regional front, Indonesia has always supported the full integration of Australia into the region for obvious reasons. Geography dictates that as neighbors Indonesia and Australia should work together to confront common threats and to develop a stable, peaceful and prosperous region. 

 

30.    One example of cooperation that has been particularly encouraging, if not legendary to some quarters, is the relationship between the Australian Federal Police (AFP) and the Indonesian National Police (Polri) in tackling the problems of regional terrorism and other transnational crimes. The fruits of the cooperation between the two police forces include tracking down the perpetrators of the two Bali bombings, the Marriott Hotel bombing and the bombing outside the Australian Embassy in Jakarta. The establishment of the Jakarta Centre for Law Enforcement Cooperation (JCLEC) in 2004 also signifies the close cooperation between Indonesia and Australia and the shared priority given to bilateral and regional cooperation on a variety of contemporary security issues. 

 

31.    Another pertinent example of cooperation is of course the Australia-Indonesia Partnership for Reconstruction and Development forged in the aftermath of the tsunami of 2004. Australia’s commitment to Indonesia to a total of $ 1.8 billion over five years will focus on economic reconstruction and development in Indonesia. It is a program of long-term, sustained cooperation and capacity building.

 

32.    These examples fortify my firm belief that there will be no political stability and economic prosperity in the region should Indonesia and Australia fail to cooperate. This firm conviction has led Indonesia to support the full integration of Australia into the regional networks. It is indeed in the vital interests of Indonesia to constructively engage Australia, for politically, it may serve as the bridge between the western-based civilization of Australia with the eastern-based civilization of Southeast Asian countries; whilst economically it may prove to be the key to the survival of both parties. It is also my hope that Australia should always consider Indonesia as the gateway to the region.

 

33.    It is thus heartwarming that Australia has acceded to the ASEAN Treaty of Amity and Cooperation as the TAC is perceived by ASEAN as the cornerstone for future engagements in the region. Indonesia therefore welcomed Australia’s participation in the East Asia Summit in Kuala Lumpur late last year.

 34.    It is said that democracy works best in a democratic environment. That is why Indonesia also supports the promotion of democratic values in our regional neighborhood through cooperative action in the framework of ASEAN by promoting the shared values so essential to the development of a regional community as well as to the growth of democracy, including respect for human rights.

Ladies and Gentlemen,

35.    I would like to conclude my remarks by emphasizing the need to understand the long journey Indonesia is undertaking to reform and develop itself and meet the challenges of today’s world. I do acknowledge that Indonesia is still in its transitional period, but I am very confident that we are heading in the right direction.  What we need to do now is to attend to the deficiencies of governance that even the most successful democracies in the world are not entirely free of.

36.    Our two Governments have been able to turn potential areas of conflict into opportunities for consultation and collaboration, with joint initiatives resulting in formidable outcomes. The relationship between Indonesia and Australia, being that of close neighbors, will always require effort and dedicated communication. There will always be problems, but the deep mutual respect our two countries share provides a firm basis for managing sensitive issues in a way that acknowledges both sides and optimizes the outcome for all parties.

37.    We are very grateful to friends that are always there to assist us and together work as partners in achieving our common endeavor. It is thus vital to acknowledge the importance of the two nations and their people in maintaining dialogue and close consultation to avoid misunderstandings or misperceptions in the future. For we have today an Indonesia that is capable and willing to engage the international community in the common task of building a better world. For this too is Indonesia’s constitutional ideals and aspirations.

        I thank you.

 Canberra, 15 March 2006

 --------------------


Media inquiries : contact the Information Officer of the Embassy at + 612 62508642

EMBASSY OF THE REPUBLIC OF INDONESIA
8 Darwin Avenue, Yarralumla, Canberra, A.C.T. 2600
AUSTRALIA
Tel. +612 6250 8600, Fax. +612 6273 6017