Indonesia, Korea in Mature Economic Ties
By Do Je-hae
Staff Reporter
Korea and Indonesia have built mature economic and cultural partnerships since establishing formal relations in 1966. Since then, bilateral relations and cooperation between the two countries have expanded with few, if any, obstacles.
A relatively unknown side to the bilateral relations is Indonesia's high level of support for maintaining peace on the Korean Peninsula.
Indonesia extended its support to the Korean government when Korean missionaries were kidnapped in Afghanistan. Indonesia played a key role in mediating successful negotiations between the Taliban and South Korea, leading to the release of the hostages on Aug. 29, 2007.
In addition, the Indonesian government has offered its continuous support to the Korean government to build peace and prosperity ― its stance on facilitating peace and stability on the Korean Peninsula has always been very clear and consistent.
Regarding the situation here, the Indonesian government welcomed the outcome of the inter-Korean summit from Oct. 2 to 4, 2007. Indonesia saw the summit as a useful opportunity to build peace and mutual trust that can lead to a situation conducive to the settlement of issues between the two Koreas.
Hence, Jakarta saw the summit as an essential step, to give a positive contribution to security and political stability in the region as well as the common prosperity of the Korean people.
In addition, both countries agreed on the peaceful use of nuclear energy during a visit of former President Roh Moo-hyun to Indonesia in December 2006. From July 23 to 26, 2007, President Susilo Bambang Yudhoyono paid a visit to Korea.
Advancing Economic Partnerships
Economic relations between Korea and Indonesia have been further strengthened by cooperation which in many fields: economic development; information technology; 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 with one another.
Total trade between Indonesia and Korea in 2008 amounted to $19.25 billion, an increase of 29.4 percent from 2007 ($14.89 billion).
Indonesian exports to Korea increased from $9.1 billion in 2007 to $11.3 billion in 2008, a growth of 24.2 percent. Imports from Korea grew by 37.5 percent, from $5.8 billion in 2007 to $7.9 billion in 2008.
According to the Exim Bank of Korea, Korean FDI to Indonesia in 2007 more than doubled that of 2006 reaching $604 million, from $257 million.
In 2008, Korean investment in Indonesia amounted to $719 million, while the cumulative value of approved Korean investment in Indonesia for the period of 1967-2008 reached $6.3 billion.
Long History of Personnel Exchanges
The two countries also share a history of exchanging migrant workers.
At present, there are more than 2,500 Korean companies operating in Indonesia and more than 30,000 Koreans are residing there, forming the biggest foreign community in the country.
Korea was the seventh biggest foreign investor in Indonesia and topped in the number of projects. Most of the Korean investors are small- and medium-sized companies working on manufacturing such as textiles, garments, footwear, toys and plastic wares.
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.
Indonesia has sent its workers to Korea since 1994 through the Industrial Trainee Program. As of March 2009, more than 95 percent of 30,361 Indonesian citizens in Korea were workers.
Diplomacy Through Education Projects
The Indonesian Ministry of Education offers scholarships under its ``Darmasiswa Program,'' to students from all over the world, including Koreans, who are interested in taking up Indonesian studies. The Darmasiswa program consists of Darmasiswa Regular Program (non degree, one year), Darmasiswa Plus Program (non degree, six months), and Darmasiswa Short Course Program (non degree, three months).
In 2008, 26 Korean students participated in the program. Indonesia hopes that the number will double this year.
The Indonesian Ministry of Foreign Affairs also offers scholarships, ``Beasiswa Seni dan Budaya'' (Indonesia Art and Culture Scholarship) for students from the ASEAN-Pacific and East Asia regions.
Koreans actively participated in learning Indonesian art and culture, especially traditional music and dance, in Bandung, Yogyakarta and Bali.
Starting from 2005, the foreign ministry has offered Indonesian language programs for diplomats from the ASEAN+3 countries.
On the promotion of cultural activities, the Indonesian Embassy has participated actively in various events held by the Korean government, such as the Hi Seoul Festival, International Horticulture Goyang and the Nami Children's Book Festival.
The embassy itself also organizes various cultural events to help promote Koreans' understanding of Indonesian culture. They include events for Indonesia Day, an Indonesian Cultural Night, Indonesian Speech Contest and Journalist Familiarization Trip to Indonesia, among others.
Indonesia has population of about 240 million, the fourth largest population in the world after China, India, and the United States.
It has approximately 300 ethnic groups that have their own languages and culture.
Friendly relations between the two countries have been marked by the frequent visits of both Presidents and high-ranking officials.
Partnership between the two countries has been gaining greater momentum, particularly over the last few years.
Korea attaches great importance to advancing relations with Indonesia, as demonstrated during President Lee Myung-bak's visit to Jakarta last March. During the visit, the two countries signed 12 agreements, reinforcing partnerships in energy, technology, fisheries and other fields.