Bilateral Relations Taking Off

Since the establishment of diplomatic relationship between Indonesia and Korea in 1973, the two countries have been developing a very close and fruitful relationship in various fields.

The relations of the two countries gained a greater momentum when the ``Joint Declaration on Strategic Partnership to Promote Friendship and Cooperation'' was signed in December 2006.

This partnership enabled both countries to a closer ties and more realistic cooperation.

The cordial ties between Indonesia and Korea have been strengthened through the exchanges of state visits by both countries' presidents and other high-ranking officials.

To name a few is the visit of President Lee Myung-bak to Jakarta in March 2009 and the visit of President Susilo Bambang Yudhoyono on the occasion of ASEAN-Korea Commemorative Summit in June 2009.

The two countries' cooperative relations have also been expanded because of the complementary sectors, which serve the interest of both sides. Indonesia has abundant natural resources, many of them still untapped.

This fits well with Korea's search for alternative sources of raw materials.

Likewise, Indonesia has relatively cheap but skillful human resources, while Korea provides high technology and capital.

Both Indonesia and Korea have a common commitment to continually enhance their bilateral relations.

Such commitment is shown not only through the governments of both countries but also through private sectors.

During the exchange of visits in 2009, the two presidents have shown their strong bond of friendship as well as acknowledgment that the relationship has brought in significant contribution to their respective national development.

Economic relations between Indonesia and Korea have been further strengthened with cooperation which covers many fields: economic development; information technology; foreign workers; energy; maritime and fisheries; forestry; tourism; small and medium enterprises; and science and technology.

On bilateral trade, Indonesia and Korea are important trading partners to each other.

Total trade between Indonesia and Korea in 2008 amounted to $19.25 billion, a 29.4 percent from 2007 when it amounted only to $14.89 billion.

Exports of Indonesia to Korea increased from $9.1 billion in 2007 to $11.3 billion in 2008, 24.2 percent growth.

Imports of Indonesia from Korea grew by 37.5 percent, from $5.8 billion in 2007 to $ 7.9 billion in 2008.

From data recorded by the Export-Import Bank of Korea, Korean foreign direct investment (FDD) to Indonesia in 2007 has more than doubled to reach $ 604 million.

For 2008 alone, Korean investment in Indonesia amounted $719 million, while the cumulative value of approved Korean investment in Indonesia for the period of 1967-2008 accounted for $6.3 billion.

However, from the Indonesian point of view, the value of those investment projects involving Korean capital would be much bigger since most of the projects are in the form of joint ventures, involving Indonesian or other countries companies.

According to Indonesia Investment Coordinating Board, there are some 3,000 projects involving the Korean investment since 1968-2008 with the total value of $ 13 billion.

At present, there are more than 2,500 Korean companies operating in Indonesia and more than 30,000 Korean people domicile in Indonesia, which count the biggest foreign community living in the country.

It ranked Korea the seventh biggest foreign investor in Indonesia and the biggest in terms of number of projects.

Most of the Korean investors are small- and medium-sized companies, working on manufacturing such as textile, garment, foot ware, toys, plastic ware, etc.

Labor

Such complementarities between the two countries has also been proven by the fact that Korea is hosting quite number of migrant workers originally from Indonesia.

Both the workers and their employers have been contributing to the economy of their respective countries.

Labor relations between Indonesia and Korea established in 1994 through Industrial Trainee and in August 2004 through the MOU on sending workers under the Employment Permit System (EPS).

In September 2008, this MOU has been renewed for the second time and Indonesian workers to be employed in Korea have the same rights and positions as Korean workers.

As of December 2008, the number of Indonesian People in Korea is around 29,970 and 75 percent of that ― 22,532 ― are workers, who have entered Korea under the EPS.

Indonesian workers in Korea are the 4th largest number of workers (13%) following after Vietnam, Thailand, and the Philippines. The chance for Indonesian workers to get involved and participated in Korean economic development will be so much expected to flourish in the next following years to come and bring mutual benefits for both countries.

In an effort to succeed the EPS Implementation, the Indonesian government provides various training before workers enter Korea.

This training conducted in order to enhance understanding on the Korean language, culture, and laws so that the Indonesian workers will have sufficient ability to adapt and communicate with the environment.

Since 2008, the Indonesian Embassy have conducted an entrepreneur seminar with the purpose for giving information to Indonesian workers whose sojourn period expires (three years of working) with large amount of collected income, but facing difficulties on how to deal with it.

We presume that the seminar is very important to improve their financial life after they return to Indonesia.

In line with this, the Korean government already expanded efforts e.g. by establishing foreign workers supports centers that provide counseling and phone counseling in workers' native language.

Moreover, the Korean Ministry of Labor previously launched the ``Happy Return Project,'' which would be one good way to strengthen bilateral cooperation and bring mutual benefits to Indonesia and Korea.

This project explores ways to support foreign workers who are due to return to their mother country by strengthening the support of start up business and employment by foreign workers.

By reviewing demand in advance and considering economic conditions, the project will review various ways, including vocational training for foreign workers before their return.

The Korean Ministry of Labor plans to establish human resources department pool to connect job offers and job hunting.

In this matter, the ministry will provide information on business start-up and establish comprehensive support website.

Furthermore, the expansion programs for inviting and educating vocational trainers when educating and training foreign workers before their entry into Korea, the project will make more use of foreign workers, who previously worked in Korea as trainers.

This will encourage Indonesian workers to give their best while working in Korea.

One success story came from an Indonesian worker, who returned home after eight years in Korea, together with several colleagues, and established a private Korean language training center in Indonesia.

Students of the center gain the basic knowledge of Korean language related to vocational training.

Quite a good number of the alumni already have jobs at Korean companies in West Java, but 90 percent of them have recently becoming EPS- Workers in Korea.

Further, the center has attracted a large number of Indonesians, who want to take the chance to experience ``the Korean Dream.''

Moreover, the dreams of the founders to have their own business and to help job seekers became a reality.

IT cooperation

In the field of information technology, the most prominent form of cooperation between Indonesia and Korea is cooperation between Radio Republic Indonesia (RRI) and Radio Korea International-Korea Broadcasting System (KBS).

Cooperation between the two institutions began in 1975 in the form of an Indonesian language program provided by RRI broadcasters.

Until now, on a regular basis, RRI dispatches one of its broadcasters to KBS Radio in Seoul to host the Indonesian language broadcast program.

In a similar fashion, the Korea Broadcasting Institute (KBI) and Arirang TV have also established cooperation with Indonesia's national television, the Televisi Republik Indonesia (TVRI).

As a result, both stations have exchanged programs to be broadcast in Korea, and vice versa, as well as co-producing several TV documentaries.