The Dutch Return, This Time as Friends

Cornelis de Houtman, the first Dutch traveler to arrive in Indonesia and generations of other Dutch officials, traders and investors that came later, knew well how Indonesia could provide a lifeline for the Netherlands for hundreds of years, while making themselves very rich in the process.

And now, with Europe still struggling to cope with an economic downturn, Indonesia’s significance is back on the table, offering massive opportunities for the Dutch economy.

The Netherlands is sending its largest delegation since the independence of its former colony in 1945, a visit that has been dubbed by Dutch Prime Minister Mark Rutte as “the most serious effort to synergize the two countries that have deep historical ties for the sake of present and future mutual benefits.”

Rutte, who leads 200 businesspeople representing more than 100 companies and research institutes on a three-day visit, will meet today with President Susilo Bambang Yudhoyono as the Netherlands aims to build a new chapter of deeper cooperations with Indonesia, while trying to offset incidents that have damaged relations with its former colony in recent years.

“We have a long and difficult history together. But we must focus on the future, not only on the past, for the mutual benefits of the two countries,” Rutte told the Jakarta Globe in an interview in his office last week.

New era of relations

To show that the visit is historic and crucial, Rutte and Yudhoyono will sign an unprecedented joint declaration on comprehensive partnership between the two countries to take the relations to a new high.

The declaration will become an umbrella agreement for both countries to boost their cooperation further.

“The declaration marks the new era of our relations and cooperation. The partnership will focus on water management, logistics, infrastructure, food security and agriculture and education,” said Rutte, who will be accompanied by several key ministers and officials, including Minister for Foreign Trade and Development Cooperation Lilianne Ploumen and Minister for Agriculture Sharon Dijksma.

Rutte stressed that what is important for both the Netherlands and Indonesia is how the countries can benefit each other in the future.

Bernard Bot, an influential Dutch senior diplomat and former foreign minister, who declared in 2005 that the Netherlands acknowledged Indonesia’s independence in 1945, agreed that it’s time for both countries to come to terms with past and move ahead. “There’s so much we can do together for the sake of our future,” he said.

“It’s for real now,” Retno LP Marsudi, the Indonesian ambassador to the Netherlands, said in a separate interview.

Concrete offers

On water management, the Netherlands has funded a master plan for a massive sea wall in Jakarta Bay to prevent tidal flooding and to manage the flow of water within the capital.

The area behind the 35-kilometer long, 15-kilometer wide wall will be turned into office complexes, malls and other commercial buildings. There is even a plan to relocate all government offices to the area once it is completed by 2025.

“The master plan will be finished by early next year and groundbreaking will begin later in the year,” Retno said.

The Netherlands, Rutte said, has always had to deal with high water and sea waves in order to survive, considering that the country is partly below sea level. He added that his country would bring state-of-the-art technology for Indonesia to use.

“It’s time for the Netherlands to empower Indonesians by equipping them to fish, not by merely providing the fish,” said Jesse Kuijper, a businessman who will join Rutte to Jakarta and who heads the Netherlands-based Indonesia-Nederland Society.

On logistics, Dutch companies could help Indonesia build world-class seaports across the country while in agriculture several Dutch firms have offered their Indonesian counterparts investment and technology to enable the country’s farmers to produce food with the latest technology at a time when prices are rising and the nation is struggling to feed its people.

“The Netherlands is the world’s second-largest exporter of agricultural products, and we have many areas we can work together,” said Rutte.

In education, Indonesia has asked the Netherlands to treat Indonesian students as local students, so that they pay lower tuition fees. “It would be an excellent gesture from the Dutch government if the Indonesian students are treated as locals,” said Kuijper.

Difficult time in Europe

Rutte acknowledged that Europe and the Netherlands are facing tough times. “We have a difficult period at the moment. I do believe that we have made good strides but there is still a long way to go,” he said.

He said he admired Indonesia’s high economic growth of 6 percent annually. “We are jealous,” he said, smiling.

The latest figures from the Dutch Central Bureau of Statistics (CBS) show the Netherlands economy grew by just0,1 percent in the last quarter compared to the previous.

The CBS also reported that there were 46,000 fewer jobs in the third quarter.

“Indonesia can offer Dutch businesspeople a place for investment with a huge market of 240 million people and a growing middle class of over 100 million, as well as entry gate to the bigger market of Asean,” said Aleksius Jemadu, dean of Pelita Harapan University’s School of Social and Political Sciences.

He said the Netherlands now sees Indonesia as a successful democracy with long-term stability. “Relations between Indonesia and the Dutch should be more special — more than other ties — because we have a long history together. We can synergize, with Indonesia providing natural resources and markets and the Dutch providing capital, knowledge and technology,” Aleksius said.

He added that the Netherlands can offer Indonesia the opportunity to become a producer and not just a consumer. “It is now depending on Indonesia to realize the goals,” Aleksius said.

The Netherlands already is Indonesia’s second-biggest trading partner in Europe. In 2012, trade between the two countries was worth $4.7 billion.

Blast form the past

Relations between Indonesia and the Netherlands have experienced ups and downs, with two incidents proving particularly embarrassing for leaders of both countries in the last few years.

President Yudhoyono was forced to cancel his trip to the Netherlands in 2010 after a group of Moluccan independence activists filed a motion in the Dutch courts to arrest the president for gross human rights violations in Maluku and Papua.

Relations became tense after the trip was canceled, with many in Indonesia blaming the Dutch for insulting Yudhoyono.

The relations plunged into a new low when the Dutch government had to cancel the sale of Leopard tanks to Indonesia last year after the parliament voted to reject the deal. Indonesia then angrily turned to Germany to buy the same tanks.

Rutte, who loves Indonesian food like nasi goreng and sate and whose parents lived for some time in Indonesia, gave assurances such incidents would not happen again under his administration. “In fact, we are expecting President Yudhoyono to visit us next year,” he said.

About the Moluccan activists, Retno said everybody has the right to keep on dreaming. “But the question is whether or not it is realistic.”

She said relations between the two countries are getting better, with both sides understanding and trusting each other.

Retno also said the close connections between the people of the two countries meant Indonesia and the Netherlands could not afford to let relations cool.

Currently, 10 percent of the Netherlands’ 17 million population has direct or indirect links to Indonesia. And every year, Retno said, thousands of Indonesians travel to the Netherlands as tourists or for business, with the Dutch doing likewise.

Aleksius said fewer and fewer people in Indonesia see the Netherlands as a former colonial power.

“I don’t think it matters much now. People are becoming pragmatic, seeking concrete benefits and looking forward instead of being bothered by the past,” he said.

Source: The Jakarta Globe

Papua development program aims to lure the young back to farming

As with many areas in Indonesia and around the world, people in Papua move from rural areas to the city. However, having lived close to their land for thousands of years their competitive streak in setting up small businesses lags behind that of migrants who have for generations had the skills to run businesses, according to Rio Pangemanan, Oxfam program manager on the Papua Enterprise Development Program.

In no corner of the town of Wamena will one see a shop that is owned or run by indigenous Papuans. Indigenous women with their noken (traditional Papuan woven bags) hanging from their heads to their backs sell sweet potatoes or vegetables on a cloth in the street markets. Young strong-limbed Papuan men push rickshaws, some even in bare feet. Others wander around the markets, intoxicated from glue-sniffing.

The UK based international development organization Oxfam is the international NGO that is allowed to operate in the province. Working with local partners, Oxfam has been supporting local farmers in five regencies in Papua in developing their farms and markets.

Oxfam supports the farmers according to the local needs and potential. For example, in Yapen Island, Oxfam has supported the Wamanuam Be Kitabono Yawa (WMY) Cooperative in cultivating vanilla beans. In Jayawijaya regency, the NGO has supported the Independent Business Foundation (Yapum) in cultivating and distributing sweet potatoes. Meanwhile in Paniai and Nabire Oxfam has supported their local partners in helping coffee farmers and in Jayapura, cacao farmers.

Oxfam’s contract ends next year, but Rio hopes that the NGO will get an extension for its programs. Rio said of the vanilla program in Serui that vanilla vines needed three years to produce beans, so new farmers would only have their first harvest in 2014. Rio said that by the end of 2014, he hoped the cooperative would be able to run independently.

Meanwhile in Wamena, Rio estimates that it will take two years for their partners to be independent in terms of management. He said that if the local government could take part in transportation and distribution of the produce, Oxfam’s partners, such as Yapum, would be able to operate independently once their management capacity had been strengthened.

In his office in Serui, Apolos Mora, the head of WMY cooperative said that for years vanilla trees grew in the wild in forests in Yapen. The Dutch brought the seeds when they opened coffee and chocolate farms on the island in the 1950s. “Before they [the Dutch] could teach the local people to cultivate vanilla, there was the transfer of power to Indonesia,” Apolos said.

One day in 2008, Apolos was reading about vanilla in the bookstore and an “Aha!” moment hit him as he realized that these plants were the ones that grew wild in the forest. When Madagascar, the largest vanilla pod producer in the world, had poor harvests, the price of vanilla pods skyrocketed to Rp 3 million (US$309) per kilogram, Apolos said. Apolos then decided to cultivate vanilla vines and trained the farmers joining his cooperative to plant vanilla too. He sells the pods to Manado, where they are exported to Europe, the US, Australia and New Zealand. Recently, the price for dried vanilla pods was Rp 115,000 per kilogram.

PEDP manager, Rio Pangemanan, said that Oxfam supported programs according to the characteristics of the area. The island and coastal areas are more developed than the mountain areas due to ease of access to other islands in Indonesia. The mountain areas meanwhile are more isolated. This results in a different variety of crops that can be profitable to produce. While farmers in Serui can sell their crops in Manado, in Wamena farmers can only sell locally.

In Jayawijaya, Oxfam supports farmers revitalizing their sweet potato farms. Partnering with Yapum, they have developed 20 sweet potato collecting points in Jayawijaya that will distribute the crops to the markets in Wamena. Rio said that these collecting points had become a place for farmer’s advocacy and education to motivate the community to return to their farms instead of leaving for the city.

Local NGOs such as Yapum and WMY cooperative say that it is not always easy advocating for farmers to cultivate vanilla beans or sweet potatoes. Farmers’ programs in Papua are often project-based, in which farmers are given money to open rice paddies or fishponds. Once the funds dry up, the projects become neglected.

Eli Tabuni, the secretary of one of the sweet potato collecting points was one of the farmers who questioned the program. “This [sweet potato farming] is our culture, why are you making a project out of this?” he asked Yapum and Oxfam during their visit there. He said that many of the programs were only temporary and were not really helpful.

Kiloner Wenda, Oxfam Sweet Potato project officer in Jayawijaya, answered Eli in the Lani language with another question. “Where are the young people now who will work on the farms?” he said. “If we don’t start now, then our culture will slowly disappear,” he said.

Rio said that the projects aimed to support indigenous Papuan farmers in developing their business sense and opening their access to markets. In Wamena, women carrying their sweet potatoes from their villages to the market have to pay for transportation to the market for their heavy bags.

Yapum encourages them to sell the potatoes for Rp 5,000 per kilogram, and they only need to drop their crops at the collecting points. This way, the women did not have to travel far to the markets and could save on transportation, Rio said.

In Serui, the program has managed to attract young farmers, but in Wamena, whether the program will succeed in bringing the young back to the farms is yet to be seen. For the kids that like to play in the farm, their dreams are to be pilots and teachers, they say. But they will always love eating sweet potatoes.

Source: The Jakarta Post

Indonesia, Netherlands pledge to further ties

Indonesian Foreign Minister Marty Natalegawa met here with visiting Netherlands Foreign Minister Frans Timmermans, pledging to further promote bilateral relations between the two countries.

Speaking at a news conference with his counterpart Marty, Timmermans said both sides agreed to bring the bilateral relations to a higher level, as it deserves to be.

“Indonesia is increasingly a global player with global responsibilities, my ambition is for the Netherlands to be Indonesia’s gateway to Europe,” Timmermans said, adding that his country sees Indonesia as the country’s prime partner in Asia.

Marty said the two ministers had a fruitful and productive discussion on cooperation ranging from trade, investment, infrastructure development, water management, to agriculture and city planning.

However, bilateral ties between the two countries were believed to have been turned downward in recent years triggered by the abrupt postponement of President Susilo Bambang Yudhoyono’s state visit to the Netherlands in 2010 over a human rights trial in the host country which would lead to his arrest.

Last year, Dutch Media reported the majority of parties in the Netherlands parliament opposed the deal of selling 100 Leopard battle tanks to Indonesia because of Jakarta’s poor human rights record.

When asked about these issues’ repercussion in the development of bilateral relations, Marty said the tasks for the two ministers are to be able to observe, acknowledge and to be aware of these different dynamics within the two countries, yet at the same time able to see the broad picture.

“We recognize that our two countries have special ties in the past, we must move forward and make our relationship more contemporary,” Marty said, adding that the two countries should not be taken hostage by the past development.

The Netherlands, Indonesia’s colonial master for centuries until 1945, is Indonesia’s largest foreign direct investment source and one of the most important trade partners in Europe.

The Netherlands’ direct foreign investment in Indonesia totaled 966.5 million U.S. dollars last year, accounting for 38 percent of the total investment from Europe. The trade between the two countries reached 3.3 billion U.S. dollars in the first three quarters of 2012 amid weakening European economy.

Source: Xinhua

Garuda considering Papua – China flights

National airline company Garuda Indonesia has been exploring possibilities of Papua – China flights to support the Master Plan for Acceleration and Expansion of Economic Development (MP3EI).

General Manager of Garuda Timika Office Nano Setiawan said in Beijing Wednesday (06/06) that besides the MP3EI plan for the Papua-China flights, there is also a plan to accelerate the development of Papua and West Papua as the East is an important hub.

“Garuda will facilitate the traffic movements between the two countries in the development of the economy and tourism,” Setiawan said. Garuda Timika and Biak offices and several travel agents are making trips to Beijing and Guangzhou.

With regard to Garuda’s strategy for increasing the comfort of Chinese tourists to Papua in the long trip, he said the long hauls to Papua will be combined with other destinations, such as the package from Jakarta, Jogya, Denpasar and then Papua.

The flights to China by Garuda Indonesia have always been via Jakarta.

Beijing General Manager of Garuda Asa Perkasa said the Jakarta-Beijing flights will be five times a week, Jakarta-Guangzhou and Jakarta-Shanghai flights every day.

On the flights to Papua he said Garuda flies on the Jayapura-Biak-Makassar-Jakarta or Jayapura-Timika-Denpasar-Jakarta routes. “With the route from Papua there will be a connection to Australia, Korea and Japan via Denpasar,” he said.

He added that with the route, flights from Papua can also reach Europe, China and Asean via Jakarta,”.

Source: ANTARA News