News and Views

THE INDONESIAN EMBASSY BI-WEEKLY BULLETIN · ISSUE II/02 · 18 February2008 Indonesia News and Views

IN THIS ISSUE:

Politics

Economy

Society & Culture International

Others

Editorial

USEFUL LINKS:

Government (www.indonesia.go.id)

Department of Foreign Affairs (www.deplu.go.id)

Department of Cultural and Tourism Lembah Anai Nature Reserve: (www.budpar.go.id) West Sumatra National Agency for Export Development “Lembah Anai” is the famous 40 meters high waterfall situated at the edge (www.nafed.go.id) of Tandikat volcano, which is one of the nature reserves waterfalls in West Sumatera. As part of tourism attraction, the surroundings of the Anai Investment Valley are magnificent with the dense of tropical forest which creates a Coordinating Board nature reserve where is near the Tandikat volcanic cone unit existed of (www.bkpm.go.id) summit and craters area, adjacent to Singgalang volcano, one of the famous mountain in West Sumatera. Statistics Indonesia (www.bps.go.id) (Source: my-indonesia.info)

The Jakarta Post (www. thejakarta- post.com)

Issued by THE INDONESIAN EMBASSY, INFORMATION & SOCIO-CULTURAL AFFAIRS Kuusisaarentie 3, 00340 Helsinki, Finland, Phone. (358-9) 477 0370, Fax. (358-9) 458 2882, E-mail. [email protected] The Indonesian Embassy, Bi – Weekly Bulletin. Issue 18 February 2008

TABLE OF CONTENTS

POLITICS • POLAND WANTS CLOSER STRATEGIC TIES WITH RI …………...... 1 • INDONESIA, QATAR SUPPORT EACH OTHER IN IPU NOMINATIONS ..... 1 • AKBAR READY TO VIE FOR GOLKAR PRESIDENTIAL CANDIDACY IN CONVENTION ………………………………………………………………….. 2

ECONOMY • MANDATORY USE FOR BIOFUEL MAY BE SET AT 2-2.5% …………….… 2 • RI CAR EXPORTS EXPECTED TO INCREASE 40 PCT IN 2008 …………. 2 • ELECTRONICS EXPORTS PROJECTED TO REACH US $ 8 BILLION IN 2008 …………………………………………………………. 3 • AGENCIES DISCOVER HYDROCARBON IN ACEH ……………………….… 3 • INDONESIA AIMS AT EXPORT MARKET …………………………………….. 4 • JAMBI'S NON OIL EXPORTS WORTH 524.92 MILLION US DOLLARS ….. 4

SOCIETY & CULTURE • BUKITTINGGI, THE MOST RELAXED TOWN IN ALL SUMATRA ………………………………………………………………….. 5

INTERNATIONAL • UN ANTI - CORRUPTION CONFERENCE : MONEY LAUNDERING OPPORTUNITIES REDUCED …………………………………………………… 6 • EXPORT - IMPORT BANK TO FINANCE ELECTRICITY PLANT PROJECT ………………………………………………………………………….. 7 • EUROPE GRANTS RP. 132.3 BILLION FOR BIRD FLU …………………….. 8

OTHERS • TOURIST ARRIVALS IN DECEMBER 2007 UP 10 PCT …………………….. 8 • BALI TO HOLD 17 FESTIVALS IN SUPPORT OF VISIT INDONESIA YEAR 2008 …………………………………………………………. 9 • NEW AIRPORT PLANNED FOR WEST SUMATRA …………………………. 9 • BENGKULU WILL HAVE NEW PORTS ………………………………………… 9

EDITORIAL • SOEHARTO'S ASEAN LEGACY …………………………………………… 10

The Indonesian Embassy, Bi – Weekly Bulletin. Issue 18 February 2008

He said Kaczynski's statement was in POLITICS line with Prime Minister Donald Tusk's

talks with Indonesian House Speaker POLAND WANTS CLOSER Agung Laksono when the latter visited STRATEGIC TIES WITH RI Warsaw in December last year. Jakarta - The Polish government wants On the occasion, Tusk and Agung to step up its strategic relations with Laksono reached an agreement to Indonesia, along with other key players develop bilateral relations and in Asia Pacific such as China, India, and cooperation at a strategic level because Japan, Polish President Lech Kaczynski of the two countries outstanding said, according to a press release positions and roles in their respective made available by the Indonesian regions. Embassy in Poland. Ever since obtaining European Union According to Indonesian Ambassador to membership in 2004, Poland with a Poland Hazairin Pohan, President Lech population of about 40 million had been Kaczynski's statement was quoted by enjoying an average economic growth the Polish presidential office in relation of 6 percent per year. (ANTARA) with an early-year meeting with foreign INDONESIA, QATAR SUPPORT diplomats. EACH OTHER IN IPU The Polish president celebrated the New NOMINATIONS Year in January with the diplomats and made an evaluation of developments in Doha - The Indonesian government Poland's foreign relations and on the supported the nomination of Qatar to be priorities of his policies in 2008. the next president of the International Postal Union, and in return Qatar "We have a profound interest in seconded Indonesia's candidacy of stepping up relations and good becoming next Inter-Parliamentary cooperation with Indonesia in the field of Union (IPU) president, an Indonesian economy and politics, the improvement envoy said. of the cooperation will be conducted through bilateral channels as well as Indonesian Ambassador to Qatar Rozi Polish position as a member of Munir said that both countries supported European Union," Kaczynski said. each other as they had close political relations. He specially noted that there were dynamic developments last year in "Indonesia intends to nominate House Indonesia, Malaysia, and Singapore. Speaker Agung Laksono to be IPU president, while Qatar wants to be the In his statement, the Polish president next president of the International Postal also indicated a positive signal to Union," Rozi Munir said. improve relations with Russia and Belarus, and his support for the Middle The ambassadors said that the two East peace process. countries wanted to intensify the bilateral ties. Meanwhile, Hazairin Pohan said he welcomed the Polish president's strong Indonesia and Qatar were both commitment to improving relation and members of several international cooperation with Indonesia. organizations, and once were

1 permanent members of the United would equal 1.2 million to 1.5 million Nations Security Council. kiloliters (kl) per year. The two countries also shared similar Evita H. Legowo, the first secretary of political views and especially supported the committee, told The Jakarta Post it the independence of a sovereign had been suggestedthe policy come into Palestinian state, the ambassador said. effect in July before the committee's (ANTARA) tenure ended in August. AKBAR READY TO VIE FOR The policy would be imposed in every GOLKAR PRESIDENTIAL region across the country, not only in CANDIDACY IN CONVENTION Java and Sumatra as previously proposed, she added. Yogyakarta - Former Golkar Party chairman Akbar Tandjung said he was "I don't think the policy will cause any prepared to be elected the party's 2009 problems as Pertamina is currently presidential candidate through a party distributing Biosolar fuel with a biofuel convention. content of 2.5 percent in most provinces in Indonesia," Evita said. Therefore, Golkar should hold a convention where its candidate for the She said the proposed policy was quite 2009 presidential election could be realistic as the country was already selected through debates and dialogs, producing between 1.5 million and 1.8 he said. million kl of biofuel per year. "If a convention will be held, I will surely Evita said it had not been decided participate. I will then take part in whether the policy would be applied in debates with whoever else is nominated, the industrial sector, the transportation including Jusuf Kalla," Akbar said. sector, or both. (The Jakarta Post) He said he would be ready to accept RI CAR EXPORTS EXPECTED TO whatever the outcome of the convention INCREASE 40 PCT IN 2008 would be. "If Kalla wins, I will accept Jakarta - Indonesia's exports of defeat but if I win, I hope Kalla will also completely-built-up (CBU), completely- accept it," he said. knocked-down (CKD) cars and "However, because so far there is no automotive components are projected certainty Golkar will hold a convention, I to increase in value by about 40 percent will wait and see. For sure, I am ready to in 2008, an industry ministry official said. devote myself to the nation and country Exports of CBU, CKD cars and totally and with full commitment," he automotive components in 2008 are said. (ANTARA) expected to reach a total value of 2.9 billion US dollars or up by about 40 ECONOMY percent from 2.1 billion US dollars in HIGH INFLATION RATE WILL BOOST 2007, director general of transportation MANDATORY USE FOR BIOFUEL vehicle industry and telematics at the MAY BE SET AT 2 - 2.5 % Industry Ministry, Budi Darmadi, said. Jakarta - The National Biofuel "This year CBU car exports could reach Development Committee has suggested 75,000 to 80,000 units up from 55,000 the government make it mandatory for units in 2007," he said. biofuels to constitute 2 to 2.5 percent of Budi said he was optimistic the value the nation's total fuel consumption. This and volume of car and automotive component exports would increase in

2 2008 as car making principals were The disturbance could however be increasingly allowing the automotive reduced by expanding the export industry in Indonesia to export. markets to include non-traditional destinations such as countries in the PT Daihatsu Astra Motor (ADM) had set Middle East, Africa, East Europe and itself the target of exporting 18,000 Asia. units of Grand Max minibus and pickup cars under the brandnames Toyota "There have been requests for Town Ace and Toyota Lite Ace to Japan Indonesian electronic goods such as in 2008. televisions and dry batteries from Poland," Abdul Wahid said. ADM would also export Daihatsu Terios cars. Therefore, he predicted that Indonesia's consumer electronic products would PT Toyota Motor Manufacturing reach a value of between US$7.5 billion Indonesia (TMMIN) would export and US$8 billion. Indonesia's Toyota Fortuners, Innovas and Avanzas electronics exports in 2006 were to a few countries. Indomobil would do recorded at US$6.9 billion and they the same with its Suzuki APV and so were expected to reach US$7.6 billion in would other car assembling companies 2007. with their respective products. Data at the Central Bureau of Statistics Budi said the existence of the newly built (BPS) showed that Indonesia's exports car port in Tanjung Priok was expected of industrial goods such as electronics, to greatly facilitate the automotive telematics and electrical machines in industry's production and export the January-September 2007 period performance. stood at US$9.3 billion. At present the national automotive He said the industry ministry would industry's production capacity stood at encourage the development of six about 900,000 units a year while the electronic goods whose markets at domestic market this year was projected home were good such as television sets, to absorb more than 500,000 units. refrigeators, air-conditioners, washing (ANTARA) machines, fens and water pumps. ELECTRONICS EXPORTS (ANTARA) PROJECTED TO REACH US $ 8 AGENCIES DISCOVER HYDRO BILLION IN 2008 CARBON IN ACEH Jakarta - Indonesia's consumer Indonesian and German research electronics exports are pedicted to reach agencies have claimed a massive a total value of US$8 billion this year, a finding of underwater hydrocarbon, senior industry official said. which may contain oil and gas reserves, "The world economic slowdown will off the western shore of Aceh Nangroe certainly disturb our electronics exports," Darussalam. In its press statement, the director of electronics industry affairs at Agency for the Assessment and Industry Ministry Abdul Wahid said. Application of Technology (BPPT) and its counterpart Bundesanstalt fur He said the slowing of economic growth Geowissenschaften und Rohstoffe in the United States and Europe, two (BGR) said the unproven reserve might traditional export destinations of reach 107 billion barrels of oil or gas as Indonesia's electronic products, would a minimum. disturb the export of one of the country's premier commodities.

3 The statement said the maximum of the as an oil producer. Mari said the market reserve could reach 320 billion barrels. outside America has been worked on As a comparison, the proven reserve of seriously starting last year. Saudi Arabia is around 264 billion She said the government will focus on barrels, the largest in the world, while domestic economic growth when the Banyu Urip block in Cepu, Central exports undergo a decrease. “As Java, contains around 450 million regards domestic affairs, we must focus barrels. on fiscal stimulus so as to proceed with The BPPT said the discovery was better investment this year,” she said. apparently unintended and the primary General Chairman of the Indonesian aim of the research was to map the Entrepreneurs Association (Apindo), geological construction of the Sofyan Wanandi, said the market surrounding sea in Aceh after the 2004 diversification cannot be acomplished to Indian Ocean tsunami. alleviate the US’ recession impact. “It However, through a research vessel, cannot be, because 50 percent of the Sonne, the agencies managed to locate world’s trade is in America. So it cannot an underwater basin which may contain be shifted,” he said. hydrocarbon. The research and Sofyan agreed that Indonesia’s preliminary finding remains subject to economy must be supported from the further tests to determine the actual inside, especially the government’s reserve of the basin. investment in infrastructure projects. Further information is required before In addition to infrastructure projects, energy companies would be able to Sofyan said Indonesia’s economy still feasibly explore an oil or gas block. (The depends on natural resources-based Jakarta P ost) products. According to him, now INDONESIA AIMS AT EXPORT economic activities cannot rely on the MARKET foreign sector. “But on one’s own strength, as there is still the mining and Jakarta - Trade Minister Mari Elka plantation sectors,” he said. Pangestu said that the government will (SUTARTO, TEMPO Interactive) be alert to the United States’ recession threat against Indonesia’s exports and JAMBI'S NON OIL EXPORTS the economy. The government will shift WORTH 524.92 MILLION US the export target from the US to other DOLLARS countries. Jambi - Jambi's non oil exports in 2007 Mari said the growth of Indonesia’s had increased to 524.92 million US export to the US has regressed since dollars, while in 2006 the exports last year. The growth of exports to the reached 509.53 million US dollars. US only reached five percent from the The increase occurred in the third previous 10 percent. “The secret is quarter of 2007 with an increase in the market and product diversification. The number of different commodities to 108 market which experienced growth is in from 97 , head of the Industry and Trade Asia, comprising China, India, Korea office in Jambi Hasan Basri said. and Japan,” she said at the State Palace. Jambi's export commodities are still relying on rubber, CPO, and pulp. In addition to Asian markets, Indonesia will also aim at the markets of Russia and the Middle East, which is growing

4 To boost the exports, the farmers in A center of attraction is the town's clock- Jambi have been cultivating the crops, tower, topped with a horn- shaped roof especially ruber and oil palm. and referred to by the people as Jam Gadang. It overlooks the market square In the meantime, domestic investment, and the city's magnificent surroundings. according to data from the Regional Promotion Development Agency of Also worth visiting is the Museum which Jambi in 2007 reached Rp. 9.17 trillion, is a Rumah Gadang, a traditional and foreign investment Rp.794 trillion, extended family house built in the 19th or 18.23 million US dollars. (ANTARA) century. There are dance performances at the museum's open stage every

SOCIETY & CULTURE Sunday and on public holidays. Night dance performances are at Sliguri. It is BUKITTINGGI, THE MOST also worth seeing the bullfights at Padang Lawas (6 km south of RELAXED TOWN IN ALL Bukittinggi) every Tuesday at 5.00 p.m. SUMATRA From Jakarta International Airport to Bukittinggi is one of the loveliest, Minangkabau International Airport in friendliest, most relaxed town in all Ketaping it will take about 2 hours, after Sumatra. This town is situated more or you arrive you can use Taxi or Bus to less 930 meters above sea level. Bukittinggi.

There are various Inns and Hotels in Bukittinggi, If you are looking for a star hotel, theres Novotel Coralia Bukittinggi with a grand view of the beautiful Anai valley, while Lima's Hotel, Hotel Asia Bukittinggi, formerly named Fort De and Hotel Denai are classified locally as Cock by the Dutch, has a cool climate 'superior hotels'. and is surrounded by three volcanoes: • Simpang Raya, Jl Muka Jam Gadang. Tandikat, Singgalang and Merapi. In the This large, popular restaurant has outskirts of the town is the Ngarai good-quality Padang food plus a basic Sianok canyon, a canyon separating Indonesian menu with soup, rice or Bukittinggi from Kota Gadang, 12 km noodle dishes. away overland. Kota Gadang is renowned for its fine silver filigree and • Under the Bridge Restaurant, Jl A hand embroidery. Yani. This is a slightly up market travelers' restaurant serving steaks,

5 pasta, pizza, apple pie and chocolate cake. Moving Around You can move around the city by Taxi, Bus or rent a car. Theres also a horse carriage or sado provide a colorful charming transportation to move around through the town.

• Though the horse carriage is far more expensive than the 'ojek', it is very popular with the locals, especially since it can carry whole families.

• The tourist office is at Jl Syech Other Things to See or Do Bantam 1 (Mon-Thurs 8am-2pm, Fri 8- • Watching one of the landmarks of the 11am, Sat 8am-12.30pm; tel city, the Bukittinggi Big Ben or known 0752/22403), near the clock tower. as Jam Gadang. Also. • Tours: Many places offer one-day • Make nice trips in the environment like local tours to traditional villages, the to the Harau nature reserve, the Pagaruyung palace and the Harau Pagaruyung Minangkabau palace and Canyon. Lake Singkarak. Dining Guide Souvenir Tips Good varieties of restaurants are As a tourist center, Bukittinggi boasts a situated on or close to the city. But, multitude of craft,souvenir, jewelry, and since youre in West Sumatra who is antique shops. Many craft village lie known with the spicy foods, we within an hour ride from Bukittinggi. suggested you to try some Padang dishes like Rendang and Soto Padang. Shopping Here are some of restaurants around • Lively Pasar Atas (Upper Market), just the city: south of the clock tower, is lined with stalls and shops selling everyday goods and souvenirs. Nearby, INTERNATIONAL Sumatera, • Jl Minangkabau 19, has a huge range UN ANTI - CORRUPTION of textiles from Sumba and Irian Jaya CONFERENCE : MONEY and king sticks from North Sumatra. LAUNDERING OPPORTUNITIES Travel tips REDUCED Nusa Dua, Bali - Entering its second day, the Second-Round Conference of the United Nations Convention on Anti- Corruption (UNCAC) held a ministerial- level meeting.

6 In the meeting, which is taking place in In general, all delegations agreed that Bali International Convention Centre, the key factor of the StAR initiative's Nusa Dua, the agenda was focused on success was strengthening causal the Stolen Asset Recovery (StAr) intern-nation legal cooperation. initiative. Through this effort, it is expected that Creating the stolen asset recovery opportunities for graft money laundering mechanism is one of the most important can be minimized. (Karaniya breakthroughs in the UNCAC, which has Dharmasaputra - TEMPO Interactive) now been ratified by 107 countries including Indonesia. EXPORT - IMPORT BANK TO FINANCE ELECTRICITY PLANT The conference was attended by more PROJECT than 1,000 participants from 118 countries. The China Export-Import Bank is to give a US$600 million loan for PT PLN (State In his opening speech, Foreign Affairs Electricity Company) to finance Minister Hasan Wirajuda explained that development of the Suralaya and Paiton Indonesia fully supports the international II electricity power plants. initiative and is the country that first asked for technical aid for applying it. The contract of this loan was signed at the Finance Department, Jakarta. “Why we do this is because fighting corruption is one of the top priorities on Before signing the contract, China Exim President Yudhoyono's agenda,” Bank's Chairman & President, Li Ruogu stressed Minister Hasan. , met with Vice President Jusuf Kalla at the Vice Presidential Office. Also present at this session was State Administrative Reform Taufiq Effendi. According to M.S. Hidayat, Chairman of the Indonesian Chamber for Commerce The strategic meaning of the StAR and Industry, during the meeting the initiative was described by Danny Vice President asked China Export- Leipziger, the World Bank's Vice Import Bank to increase the loan to President. finance other electricity power plants. He explained that developing countries Kalla also asked China to use more can do a great deal for development by local components in construction of the utilizing the graft money which can be electricity power plants. recovered. He also suggested sending 2,000 PLN According to the World Bank's engineers to China for technology calculations, with every US$100 million transfer. being returned, the government can hold “This afternoon they will sign the loan for immunization program for four million the Suralaya and Paiton II electricity babies, build 240 kilometers of roads or power plant projects, in East Java. This provide clean water access for 250,000 will be signed in front of the Finance households. Minister,” said Hidayat when These exclude other indirect accompanying Kalla to meet Li Ruogu. advantages. Hidayat said the loan's tenor was 12 One of the most important matters is years with a 6.4 percent interest rate. giving a strong signal to corruptors that (SUTARTO - TEMPO Interactive) the cost of committing corruption is now far higher.

7 EUROPE GRANTS RP. 132.3 Phillipe said he regarded that Indonesia BILLION FOR BIRD FLU was already serious about handling the bird flu epidemic. The World Health Organization (WHO) and the European Community have Indications of this are that the given a Rp132.3 billion grant for government already has good planning handling bird flu in Indonesia. and strategy in bird flu handling, although a lot of bird flu cases still occur. The fund will be used to finance a project to prevent bird flu infection from Therefore the European Commission spreading to humans over the next three wants to assist the government in years. applying the strategy. The project, which is named INSPAI or “This is our reason to give the Implementing the National Strategic Indonesian government assistance to Plan for Avian Influenza, is aimed at fight bird flu,” he said. increasing life expectancy for the people (AQIDA SWAMURTI - TEMPO who are infected by the H5N51 bird flu Interactive) virus.

According to Nyoman Kandung, the OTHERS Director General of Disease Control and Environment Health Improvement, the TOURIST ARRIVALS IN project is aimed at increasing clinical DECEMBER 2007 UP 10 PCT management in hospitals, healthy behavior and people's awareness of bird Jakarta - The number of foreign tourists flu. who entered Indonesia through the country's 15 main gateways in “Markets will also be worked on, which December 2007 was 401,001 or 10.29 we call wet market, as it has been found percent up from the figure in the same that infection can also come from wet month in 2006, the Central Bureau of markets,” he said during a press Statistics (BPS) said. conference with the Vice Chairman of European Community Pierre Phillipe. Compared to November 2007, the number had risen 7.86 percent, BPS This project will be managed by the Deputy Chief for Distribution and WHO with the main partners being the Service Statistics Ali Rosyidi said. Health Department and the National Commission for Bird Flu Handling and Cumulatively, the number of foreign Pandemic Influenza Alertness (FPBI), tourists who came to Indonesia through which will have representatives on the the 15 main gateways last year reached Steering Council or officers for 4,541,458, up 13.35 percent from the monitoring the project. same period in 2006 when the figure was 4,006,525, he said. The Steering Council comprises high officials who represent the Directorate Overall, 5.51 million foreign tourists General of Medical Service, the Health visited Indonesia last year including Research and Development Agency, the those who entered the country through Directorate General of Public Health, the other gateways, or an increase of 13.02 National Development Planning Agency percent from the year before, he said. (Bappenas) and representatives from The figure matched the government-set WHO and the European Community. target of 5.5 million for 2007.

8 Culture and Tourism Minister Jero Head of the Dharmasraya Wacik said in December 2007, the Transportation and Tourism Office, A. number of tourist arrivals last year hit a Ghani, said Monday a feasibility study 10-month record high of 5.5 million. for the project was completed at the end of last year, and the airport was The results of a passenger exit survey expected to be operational by 2010. (PES) suggest that on average foreign tourists stayed 9.02 days in 2007, down "It is now in the process of getting 0.77 percent from a year earlier. approval from the Transportation Ministry," Ghani said. However, the decline in the length of stay had no impact on their spending. The airport, with a planned two- Foreign tourists spent an average of kilometer runway, will be built at a cost US$970.98 each last year, up 6.63 of about Rp 400 billion (US$44.4 million) percent from the year before when it at Kenagarian Siguntur, in Pulau was US$913.09. (ANTARA) Punjung district, near Batang Hari River. BALI TO HOLD 17 FESTIVALS IN "Initially we just wanted an airstrip, but SUPPORT OF VISIT INDONESIA because the location was considered YEAR 2008 strategic, it will be developed as a commercial airport," Ghani said. Denpasar, Bali - Bali is expected to organize 17 festivals, 14 of which Dharmasraya regency was established already approved by the Minister for Arts in 2004. It was previously part of and Tourism, to succeed the Visit Sawahlunto Sijunjung regency. The Indonesia Year 2008. regency, located near the border with Jambi province, produces rubber, palm "Of the 14 festivals, two will be held in oil and coal. (The Jakarta Post) Gianyar District, including the annual Ubud Festival," Head of the Bali Chapter BENGKULU WILL HAVE NEW of the Indonesian Hotels and PORTS Restaurants Association (PHRI) Ir Bengkulu - Bengkulu province which Tjokorda Oka Artha Ardhana Sukawati, partially consists of beaches will in this MSi has said. year build several new ports for its The festivals were expected to attract plantation produce and coal. tourists to visit Bali, he said, adding that One of the ports which already has a the promotion for the events had also permit for its construction will be located been made. in Muko Muko Regency, and a further Oka said his side had set the target of survey to be followed by construction drawing 1.9 million foreign tourists from work will soon be conducted, executive the events in 2008. The target was set director of the Pulau Baai Port Authority based on the arrivals of 1,664,047 in Bengkulu Hasan Basri said. foreign tourists in 2007. (ANTARA) The construction of the ports is based NEW AIRPORT PLANNED FOR on a request of the regional WEST SUMATRA administration for smoothening the transportation of farm produce and coal. Padang - West Sumatra: A new airport serving domestic flights is scheduled to He said that the initial investment in be built in the West Sumatra regency of building the new ports in Bantal Muara Dharmasraya, about a five-hour drive and Sungai Teramang villages had from Padang. already been approved, but further improvements have yet to be made.

9 He also said that more and more ports to the developments in world politics at may in the future be built after the big the time. private oil palm estates and several coal The region also saw the revitalization of mines in North Bengkulu Regency have bilateral relationship between Indonesia started production. and its immediate neighbors, particularly The new ports will not only smoothen Malaysia. The normalization and the end farm produce and coal transportation of confrontation with Malaysia were and shipments, these facilities are also seen as important precursors to the expected to raise the income of the local formation of ASEAN. Soeharto was administra-tions where the ports are quick to read that a post-Sukarno located. Indonesia would need domestic stability and normalization with its neighbors in "If the farm produce and coal have to be the region. There was also an transported through the distant Pulau assumption that Soeharto preferred Baai port in Bengkulu, the cost will constructive relations with Indonesia's increase," he said. Southeast Asia neighbors as a means to Besides, the new ports may also serve gain regional influence. Many then said as a practical alternative because the that Indonesia was the primus interpares sea lanes to Pulau Baai port had of ASEAN. become heavily silted and are now Soeharto felt compelled to build a rather shallow and not deep enough to regional organization to assure that handle big vessels. Indonesia had dropped for good its more Muko and North Bengkulu regencies are radical approach. He moved to potential producers of crude palm oil consolidate regional trust and regional and coal. Besides in Pulau Baai and cooperation under a "pro-Western" Linau in Kaur Regency, Bengkulu, a theme. Soeharto decided to switch the mini port has been built in the oil palm government's focus from permanent estate of PT Agricinal in North revolution to developing the country's Bengkulu, Hasan Basri added. economy and wealth. Indonesia under (ANTARA) Soeharto was indeed a stabilizing factor in the neighborhood. EDITORIAL To make Indonesia's policy in the region

more visible and tactical, Soeharto SOEHARTO'S ASEAN LEGACY introduced in the country's foreign policy the concept of concentric circles in The public here seems to be as bogged which ASEAN was officially the central down by the controversy of Soeharto's focus of Indonesia's foreign policy, and legal status as it was when he was still the next level out was composed of relatively healthy. Indonesia's neighbors in the Asia Pacific Is there nothing anyone can say, not region. In the outermost circle were the about Soeharto in Indonesia or the United States and Europe, important corruption allegations against him, but partners of Indonesia in trade and aid. about what he did and said about the The way ASEAN arrived at its decision building of the Southeast Asian region. cannot be seen in isolation from Soeharto's New Order is now part of Soeharto's preferences for mushawarah history, but it was during his and mufakat (consensus and administration that ASEAN was compromise). It become the mode for launched to reflect the region's response regional decision-making later known as the ASEAN way, which has put its

10 stamp on APEC as well as the ASEAN Now, with Soeharto's fifty-fifty chance of Regional Forum. living, it is time for the public here to reassess the regional contribution made Soeharto went much further by by Soeharto, because his well-thought provoking the region to become tougher. out regional vision is as important as his Soeharto introduced the concept of contributions to the building of the national resilience to enhance the country. (Bantarto Bandoro, Jakarta - state's capability and its people in all The writer is chief editor of The fields of national endeavor so that the Indonesian Quarterly published by the nation could survive safely while at the Centre for Strategic and International same time preserve its own identity. Studies. He is also a lecturer in the Knowing the importance of the security International Relations Post-graduate and stability of the region for the Studies Program at the Faculty of Social development of its countries, Soeharto and Political Science, the University of attempted to inject the concept of Indonesia. He can be contacted at national resilience into the regional [email protected].) arena. It was during the very first summit meeting of ASEAN, held in Bali in 1976, that Soeharto tabled the idea, which was later known and accepted as "regional resilience". The concepts of national and regional resilience were then incorporated into the Bali Concord of 1976 and into the Treaty of Amity and Cooperation in Southeast Asia -- TAC. Soeharto might have anticipated that if the integrated Southeast Asia he imagined in 1966 was to be successful, it had to be based upon the concept of regional resilience. Soeharto's concept of national resilience and regional resilience reinforce each other and thus strengthen the convictions of the countries in the region about the close links between political stability and economic development at both the national and regional levels. The concept of regional resilient will continued to be relevant at all of ASEAN's life. Soeharto was with ASEAN for 30 years and earned deep respect from present and former ASEAN leaders, as showed by their visits to him on his sickbed. But he was restrained during his time from projecting himself as a "heavyweight" of ASEAN, because he knew well that ASEAN member states would have to develop their countries in their own way.