Tag Indo-Pacific

INDONESIA-FRANCE RELATIONS: STRATEGIC OPPORTUNITIES IN THE INDO-PACIFIC
Source: Ambassade d’Indonésie en France (2020)

Writer: Hendra Manurung is currently a doctoral candidate in international relations at Padjadjaran University, Bandung

In an international context marked by uncertainty and the increase in unilateralism, France’s priority is to propose an alternative: a stable, multipolar order based on the rule of law and free movement, and fair and efficient multilateralism. The Indo-Pacific region is at the heart of this strategy. This strategic region has major global importance in terms of biodiversity and climate change, particularly considering the demographic and economic weight of the area as well as the energy intensity of its natural resources. For France, the Indo-Pacific space is a geographic reality. France is present in the region via its overseas territories, and 93% of its exclusive economic zone is located in the Indian and Pacific Oceans. The region is home to 1.5 million French people, as well as 8,000 soldiers stationed in the region.

France is likely to intensify our mobilization in regional organizations, starting with ASEAN, which aims to remain at the heart of the construction of a multipolar Asia, and of which we are now a development partner, as well as in the Indian Ocean Rim Association, the Indian Ocean Community, the Pacific Community, and the Pacific Islands Forum. Henceforward, France’s strategy for the Indo-Pacific has become one of its priorities for international action since launched by the President of the French Republic during his Garden Island speech in Sydney, Australia in May 2018. In 2021, three years later, the strategy’s implementation is now producing tangible results and major progress in France’s commitments in the region. Paris wants to be more involved in the resolution of regional crises, in the securing of the main shipping routes and in counter-terrorism efforts, including terrorist financing, radicalization and organized crime. Further, it wants to strengthen the ties that bind the countries of the region on the basis of converging visions and shared interests, including with Indonesia, Australia, India, Japan, Malaysia, New Zealand, Singapore, South Korea and Vietnam, while deepening its relations with China, in the strategic framework that is now that of Europeans concern.

The Indo-Pacific has also become France’s strategic geopolitical and geo-economic reality. The global economy’s centre of gravity has shifted from the Atlantic to the Pacific. Six members of the G20, such as Australia, China, India, Indonesia, Japan and South Korea are located in the region. The maritime trade routes linking Europe and the Persian Gulf to the Pacific Ocean, via the Indian Ocean and South-East Asia, have become very important. The region’s growing share of world trade and foreign investment means that it is at the forefront of globalization and tremendous digital technology advance.

The enhancement of bilateral relations between Indonesia and France is pursued in order to achieve the mutual benefit interests and welfare of the people of the two countries, as well as to strengthen relations in various fields, particularly defence, trade, investment, tourism, culture, industry, economy, digital technology, as well as international cooperation.

Indonesia and France bilateral relations have been going on for 70 (seventy) years and have been well established since September 1950, and now both countries continue to improve as identified from the cooperation in various sectors. This cooperation is also evident from a number of dialogue activities and visits between officials of the two countries, both in a bilateral and multilateral framework, as well as mutual support in various nominations/candidacies in international organizations. Since 2011, right on the 60th anniversary of diplomatic relations between Indonesia and France, the two countries have agreed to forge a strategic partnership. Lion Air bought 234 Airbus aircraft in 2013. Although Airbus is a European program, the planes are made in Toulouse and France is recognized for its technologies and its innovative abilities. Last September 2014, Telkomsel chose Thales Technologies and Arianespace to launch its Telkom 3S satellite by 2016. The two countries agreed to establish a Strategic Partnership during the official visit of Prime Minister François Fillon to Indonesia from 30 June to 2 July, which focused on five areas of cooperation, namely: 1) Trade and investment, 2) education, 3) industry defence, 4) socio-cultural / people-to-people contacts, and 5) handling the impacts of climate change.

Henceforth, as one of the strategic economic cooperation partners, the government always maintains and improves bilateral relations with France that have existed for 70 years (1950-2020). In the midst of the global crisis due to the Covid-19 pandemic, maintaining close relations between one country and another need to be maintained sustainably, likewise the emphasis on the relationship between the government and the business world in one country with other countries is also becoming more important. Indonesia and France need to strengthen economic cooperation to face the challenges caused by the Covid-19 pandemic. Among other things, by always maintaining dialogue, including maintaining the flow of goods, especially food, medicine and medical equipment. In June 2020, Indonesia appreciates the assistance to develop health infrastructure in the Covid-19 pandemic that occurred due to the collaboration between Agence Française de Development (AFD) and PT Sarana Multi Infrastruktur (SMI).

This strategic partnership cooperation continues to be well established, until in March 2017, President François Hollande visited Jakarta and held a bilateral meeting with President Joko Widodo. The two leaders agreed to continue to strengthen bilateral cooperation between Indonesia and France, particularly in the fields of the creative economy, education, maritime affairs, sustainable cities development, energy, defence, and infrastructure. Shortly thereafter, President Joko Widodo also met President Emmanuel Macron, who officially became President of France on 14 May 2017, at the G20 Summit meeting in July 2018 in the City of Hamburg, Germany.

Indonesian government has always been committed to prioritizing public health and reviving the economy, prioritizing cooperation with various parties, implementing good government governance and reducing inefficient bureaucracy, and eliminating overlapping regulatory rules.

French entrepreneurs investments have entered into several lines of business in Indonesia. Especially since the visit of the French President to Indonesia on March 29 2017, there have been a number of bilateral agreements in the maritime and fisheries sector, creative economy and sustainable urban development. In addition, France which is well-known for the Eiffel Tower is one of Indonesia’s main export markets in Europe. Indonesian main commodities consist of palm oil, electrical machinery and equipment, rubber, footwear, furniture, and so on. France is also an important partner in development and environmental cooperation. In the first quarter of 2020, the investment disbursed by France to Indonesia was US$ 754 million, an increase from US$ 702 million in the same period in 2019.

Meanwhile, in terms of investment, Indonesian Investment Coordinating Board noted that the realization of French investment in Indonesia reached US$ 16.89 million for 255 projects (2019). This is a significant increase compared to the same period in 2018 which was valued at US$ 13.10 million for 186 projects. At present, Indonesia’s national development is related to the development of the implementation of Indonesian policies in the face of the Covid-19 pandemic, including the Exit Strategy, the National Economic Recovery Program and the Omnibus Law.

In the field of education, the French government together with Indonesia formed a joint working group cooperation forum, which includes, among other things: the double degree program at Masters and the Joint Supervision program at Doctoral Strata which is co-financed. The number of Indonesian students in France is 425 people, which is the highest in the last five years, from 2011 to 2016. Meanwhile, vocational secondary education cooperation has been established through a number of apprenticeship/internship programs in France attended by several vocational school teachers.

The defense cooperation between Indonesia and France is strengthened recently due to the two countries awareness in independence of managing the defense sector, including military tools and personnel maintenance.

Thereafter, as strategic partners, the relations between the two countries have been going well and open up great opportunities to increase defense cooperation. Indonesia needs to strengthen cooperation with France in an effort to strengthen and modernize the main tools of the defense system and advance the national defense industry. It is expected that the mutual cooperation will be established and benefit mutually in accelerating the progress of the defense industry in Indonesia as well as strengthening the Indonesia military defense system through technology transfer, increasing the use of local content and also increasing human resource capacity, as well as French collaboration to make Indonesia a key part of global production in defense equipment products. In the field of defense cooperation, bilateral cooperation between the two countries is based on the 1996 Memorandum of Understanding between Indonesian Ministry of Defense and the French Ministry of Defense in the fields of: cooperation in military equipment, logistics and defense industries. This cooperation was further enhanced through the holding of Military Bilateral Talks between the Indonesia military forces (TNI) Headquarters and the French, namely the AP French Headquarters, namely for the fields of education, information exchange, and dialogue forums.

Meanwhile, for socio-culture, there were a number of Franco-Indonesian associations in France that were particularly active in the arts and culture sector. These associations also contribute to improving good relations, especially people-to-people-contact, between French and Indonesians. On the other hand, there are also a number of universities in France that have Indonesian language programs, which are an asset in introducing Indonesian culture in France. In France every year there are a number of cultural and tourism promotion activities carried out by Indonesia and the local government of France.

During the visit of French President Francois Hollande to Jakarta in March 2017, Indonesia and France signed 5 (five) memoranda of understanding, namely: in the field of urban development sustainability, tourism, defense, science and research, and the exchange of research personnel. Furthermore, with regard to maritime cooperation, Jakarta has requested Paris cooperation in fighting IUU fishing, including making Illegal, unreported and unregulated (IUU) fishing into transnational organized crime.

Meanwhile for the creative economy sector, cooperation in the fields of cinematography, film, fashion and the digital economy will continue to be developed. Further, in the tourism sector, France sees Indonesia as a very large archipelagic country so that transportation needs to be developed and will also increase the number of tourist visits.

Indonesia and France also have a very strong cooperation closely on various international issues, including the issue of Palestinian independence, world peace forces, and against extremism and terrorism. The two countries agreed to fight for this achieving Palestinian-Israeli peace through the concept of two state solutions. Indonesia and France as contributors to the peacekeeping force world under the United Nations, agreed to increase cooperation, including increasing the capacity of the French language for Indonesian peacekeeping forces. The existence of a peacekeeping force is a commitment between France and Indonesia to jointly eliminate conflicts in the world. The spread of tolerance values and eliminate xenophobia as a joint effort to eradicate extremism and global terrorism.

France perceives Indonesia with 270 million inhabitants, which has citizens of the world’s largest Muslim majority country, capable of presenting a tolerant and plural diversity. This is an inspiration for France, namely upholding the principles of freedom and tolerance to eliminate terrorism without discrimination.

It is expected that France together with Indonesia will be able to cooperate more and make new breakthroughs towards significant partnerships in the fields of defense, economy, politics, security, as well as socio-culture. Both countries cooperation supposes are not only beneficial for bilateral interests in short and medium-term, but also regional and international interests, including through mutual support in international forums continuously.

GERMANY IN THE INDO-PACIFIC: MAINTAINING COOPERATION WITH INDONESIA
Jakarta, Sitz der ASEAN

Writer: Hendra Manurung (Doctoral candidate in international relations, Padjadjaran University, Bandung)

Asia is the most dynamic growth region worldwide and will continue to consolidate this position in the 21st century. At the same time, Asia is faced with problems of global significance. German foreign policy takes account of both dimensions. The geopolitical power shifting in the Indo-Pacific had a significant impact on Germany: the economies of the European and Indo-Pacific regions which are also closely linked to each other through global trade and shipping chains. Important trade routes pass through the Indian Ocean, South China Sea, and the Pacific Ocean. Suppose, if a conflict occurs that can affect regional security and stability, all of this will certainly also have an impact on Germany political economy interest. Until now, the Indo-Pacific has not had a clear definition of geographic area. Each actor has a different definition. However, Germany recognizes the Indo-Pacific region as the entire territory formed by the Indian and Pacific Oceans.

Germany emphatically supports the EU’s efforts to become an ASEAN strategic partner and also working towards a free trade agreement between the EU and ASEAN as a whole. While France and Italy as the EU member states have now joined Germany in becoming ASEAN development partners.

Germany aim is to strengthen relations with this important region and to expand the cooperation in the areas of multilateralism, climate change mitigation, human rights, rules-based free trade, connectivity, digital transformation and, in particular, security policy. More than half of the world’s population lives in countries formed by the Indian and Pacific Oceans. In the last few decades, countries such as Indonesia, Vietnam, China or India have experienced rapid economic growth. In the midst of a global pandemic, currently, the region is a contributor to 40% of the world’s gross domestic product. With this increase, it is expected, this region has an important role in the economy and politics. Simultaneously, strategic competition is increasing for influence in the region. The Indo-Pacific will become major trending to the development of new international order in the 21st century. Germany wants to expand closer cooperation with countries in the Indo-Pacific.

Currently, the Indo-Pacific region is still facing the challenge of tug of influence and interests between the superpowers and the socio-economic impact of COVID-19. The ASEAN Outlook on the Indo Pacific serves as a guideline for maintaining regional peace and stability. It is expected that Germany can continue to support ASEAN centrality and participate in building a safe, peaceful and prosperous Indo-Pacific region.

The Indo-Pacific region is a priority of German foreign policy. Thus, upon adoption of the guidelines on September 2, 2020 through the German Federal Cabinet of Foreign Ministers, Heiko Maas stated as follows:

‘Prosperity and geopolitical influence in the coming decades will depend on the cooperation Germany has with countries in the Indo-Pacific region. There more than all regions of the world will take place strategic decisions regarding the future arrangement of international regulations. Germany wants to participate in shaping this arrangement so that decisions that occur will be made on the basis of international regulations and cooperation and not on the rights of the great powers’.

 

Further, through this strategy, Germany will actively participate in the establishment of a new international order in the Indo-Pacific region. The Covid-19 pandemic and its effects have shown once again that the rest of the world stands in front of world challenges that can only be overcome if countries will cooperate with one another continuously. An important goal is to strengthen the structure of international cooperation, especially to tie close relations with ASEAN countries, where Berlin also wants to improve cooperation with them in the future, particularly with Jakarta.

In March 2019, the German parliament delegation met the Indonesian Ministry of Foreign Affairs to discuss developments in ASEAN and the Indo Pacific. Several issues that are of concern both bilaterally and regionally include issues related to the Sustainable Development Agenda (SDGs), palm oil, the development of smart cities cooperation, the Jakarta Declaration and projections of the future of ASEAN and the economies of its member countries in the next 10 years (2019-2029). Strengthening the regional architecture and the economic recovery of the Indo-Pacific region after COVID-19 is the main focus for increasing cooperation between Germany and Indonesia. Germany’s commitment as a partner to the Indo Pacific countries to face these challenges is manifested in sustainable practical cooperation in the political, economic and socio-cultural fields.  According to the Indonesian Ambassador to Germany, Havas Oegroseno, Indonesia has great potential to become a partner country in the dual-platform in 2021 and 2023. Although economic conditions have deteriorated in almost all countries including Indonesia, there are at least three interesting economic figures, including 1) Indonesia’s digital economy has generated by around 11% from the previous year. In 2019, Indonesia’s digital economy reached US$ 40 billion and in 2020 amounted to US$ 44 billion, 25% of this increase came from the health sector; 2) during a world economic recession, Indonesia export figure was higher than in the same month in 2013; 3) The increase in investment in Indonesia, especially for domestic investment. During the pandemic period, Indonesia received sixteen investment commitments primarily for diversion and diversification.

For Indonesia which adheres to a free and active foreign policy, this cooperation also emphasizes that Indonesia is very open to expanding cooperation and funding assistance for cooperation programs from various parties, including with Germany. The development of bilateral cooperation with Germany needs to be a priority. The Indonesian government is also ready to offer land to become the centre for German industrial estates, in addition to having prepared around 100 hectares of land. Several other attractive incentives have been prepared by Jakarta, particularly for the development of the German automation and digital innovation sector in Indonesia sooner or later.

For Germany, even in a pandemic like today, industrial technology still remains the central platform for innovation and industrial transformation solutions. However, due to the COVID 19 pandemic, it was decided to postpone the Hannover Messe 2020 exhibition to 2021. The biggest industry exhibition is planned to be held on 12 to 16 April 2021. Indonesia as a partner country for this exhibition is privileged. This is because Deutsche Messe AG (DMAG) as the organizer of the exhibition gave Indonesia the opportunity to become a partner country twice, in 2021 for exhibition on digital platforms, and in 2023 on live platforms. This makes Indonesia the longest partner country in the history of the Hannover Messe.

Indonesia and Germany as fellow members of the G-20 have implemented a form of joint responsibility towards current global important issues, especially related to climate change. This initiative is also a form of synchronization between the challenges of developing urban areas and a commitment to address environmental problems. On March 4, 2021, Indonesia’s determination to carry out green reform in the field of urban infrastructure development has received support from the German Government. Indonesia and Germany agreed to collaborate on “Indonesia – Germany Initiative for Green Infrastructure”. This cooperation is directed at urban area transformation and innovation projects that aim to reduce carbon emission levels in Indonesia. Through this cooperation, Germany will provide funding support of € 2.5 billion, or approximately the equivalent of Rp 41.25 trillion. This funding will be provided in stages over five years in partnership from 2021 to 2026 with the KfW bank, which is the German National Bank for development funding, as well as with GIZ. Four provinces were selected for the implementation of this initiative, namely: West Java, Central Java, East Java and Bali. Each province has a flagship project which is certain to be funded by this initiative. These projects lead to Indonesia’s sustainable green economy and infrastructure.

During the last ten years since 2010, the Indo-Pacific region has gained a more important role both economically and politically. Berlin is currently setting its political economy future with the Indo-Pacific countries. One of the biggest global challenges, but also in the Indo-Pacific region includes fighting against climate change and fighting marine pollution. Germany wants to work together with Indo-Pacific countries to find better solutions to the problem.

There are many areas in which Germany would like to cooperate more closely with the countries of the region, both in the area of strengthening state law and human rights and in the areas of cultural, educational and scientific exchanges. The political security sector, of course, also has a special position and attention for Berlin.

Economic relations must also be developed among other things, through the completion of the European Union free trade agreements with other Indo-Pacific countries. Additionally, through the diversification of cooperative relationships, dependence on one party can be avoided. Further themes such as digitization, networking or technology usages with a vision for the future are of critical importance to Germany’s ability to compete globally. Public communication on free access to information and protection against fake news is also included.

The policy guidelines for the Indo-Pacific region adopted in 2020 by the German government are needed at this time to maintain the country’s geo-economic conditions in the region. With these guidelines, Germany wants to facilitate a European strategy towards the Indo-Pacific. Therefore, the European political approach strategy emphasizes and prioritizes strategic factors connected to closer cooperation, including with the EU region.

In January 2019, China questioned the Indo Pacific concept that Indonesia was proposing to adopt by ASEAN. China does not reject the Indo-Pacific concept that emphasizes principles of openness, inclusiveness, transparency, respect for international law, and the centrality of ASEAN, but also not comfortable with the concept. The Indo-Pacific concept was first popularized by the United States to compete with China’s influence, which is aggressively running trillions of US dollars’ worth of infrastructure projects through the Chinese Belt and Road Initiative. After the US, several countries including Indonesia are trying to develop their respective concepts regarding the Indo-Pacific, to ensure peace, stability and prosperity in Southeast Asia amid the tug-of-war of the constellation of world major powers.

For Germany and Indonesia and other countries in the Indo Pacific, the main challenge for developing the Indo-Pacific concept at this time is to form the foundation of the current concept of an inclusive region. The ASEAN Indo-Pacific concept must not embed the concepts of other countries or blocs. Equality should be part of the AOIP concept because of the principles held in the region. Indonesia treats every country equally.

Germany is one of just a few countries in the world that has combined its numerous measures, both existing and planned, in the Indo-Pacific region to create a coherent political framework. It is important to emphasize that these are guidelines for the entire Federal Government, underlining its common desire to engage to an even greater extent as an influential actor and partner in the Indo-Pacific region and to help maintain the rule-based order in place.

Gemeinsam mit Deutschland und Indonesien das wirtschaftswachstum sowie rrieden und stabilität und sicherheit in der Indopazifischen region fördern.